Prospect theory:
A. is an alternative to expected utility theory that may resolve a number of puzzles related to risky decisions and was proposed by Daniel Kahneman and Amos Tversky.
B. gave puzzling results with respect to risky decisions and was improved by Daniel Kahneman and Amos Tversky's expected utility theory.
C. is an alternative to expected utility theory that may resolve a number of puzzles related to risky decisions and was proposed by John Nash.
D. gave puzzling results with respect to risky decisions and was improved by John Nash's expected utility theory.
A. is an alternative to expected utility theory that may resolve a number of puzzles related to risky decisions and was proposed by Daniel Kahneman and Amos Tversky.
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Prices that adjust slowly are
A) auction prices. B) custom prices. C) flexible prices. D) heavy prices.
A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis. B) per unit of pollutant is constant. C) per unit of pollutant is lower for low polluting firms. D) per unit of pollutant is proportioned to profits or ability to pay.
Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right. B) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. C) The aggregate demand curve would have shifted to the left. D) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve.
Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur?
a. The price of corn will increase. b. The price of soybeans (a substitute for corn) will increase. c. The profits of corn farmers who quickly adopt the new technology will increase. d. The profits of corn farmers who do not adopt the new technology will increase.