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Brie?y describe the preference reversal phenomenon, and explain how Grether and Plott's (1979) experimental design deals with anchoring as one of its possible causes.
Using a drawing of a concave utility function, demonstrate how expected utility the ory cannot explain preference for an 80% chance of losing $4,000 to a sure loss of $3,000. This example is taken from problem 3' in Kahneman and Tversky's 1979 paper on Prospect Theory.
What is the ADF max test?
explain the method with an example
prove that summation k =0 and summation kxi=1
Your firm will produce widgets for the next 10 years (starting at t=1). Annual revenue from selling widgets is $20,000. Production requires an initial outlay (at t=0) for machin
The inverse demand and supply functions for a product are given as: where P is price, Q is quantity and the subscripts d and show demand and supply, respectiv
A perfectly competitive firm hires its machines at a constant rental rate of r = 5 euros per unit and its workers at a constant wage rate of w = 4 euros per unit. It can also sell
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if there is multicollinearity so why we can not estimate the value of parameters?
A chance sample of visitors to a National Park was interviewed regarding their impressions of the Park. Of 200 interviewees, 120 said that they would probably make a return visit
question number one
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