Question 1

A tendency to broadly bracket decisions may be evidence of

Accepted Answer

A)  A diversification bias. 
B)  Melioration. 
C)  A status quo bias. 
D)  A default option bias. 
A)  A diversification bias. 
B)  Melioration. 
C)  A status quo bias. 
D)  A default option bias.

Question 2

If my preferences are given by $U=\ln (x)$ then my coefficient of relative risk aversion increases as my income increases.

Accepted Answer

A) True 
 B)False

Question 3

Narrow bracketing leads individuals to sub-optimal choices when there is a characteristic that is only present in a group of objects, but not present in each individual object.

Accepted Answer

A) True 
 B)False

Question 4

An individual is risk-loving if his utility function is given by which of the following functional forms:

Accepted Answer

A)  $U(x)=x^{2}$ 
B)  $U(x)=x$ 
C)  $U(x)=2 x$ 
D)  $U(x)=100 x$ 
A)  $U(x)=x^{2}$ 
B)  $U(x)=x$ 
C)  $U(x)=2 x$ 
D)  $U(x)=100 x$

Question 5

Choice bracketing refers to:

Accepted Answer

A)  The sequence in which decisions are made. 
B)  How choices are grouped together. 
C)  The mental account where choices are placed. 
D)  Segmenting choices to make decisions less complex. 
A)  The sequence in which decisions are made. 
B)  How choices are grouped together. 
C)  The mental account where choices are placed. 
D)  Segmenting choices to make decisions less complex.

Question 6

Narrow bracketing of decisions and melioration is the only way to explain addictive behavior.

Accepted Answer

A) True 
 B)False

Question 7

Rational choice theory already assumes that individuals bracket decisions in certain ways.

Accepted Answer

A) True 
 B)False

Question 8

Suppose my preferences are given by $U=\ln (x)$.
a. What is my coefficient of absolute risk aversion?
 $R_{R}=1$

Accepted Answer

@#LAT-DLM&
b. What is my coeff

Question 9

When an individual focuses on short-term aspects of a decision at the expense of the longterm aspects, then this is called:

Accepted Answer

A)  Addiction. 
B)  Melioration. 
C)  Loss Aversion. 
D)  Risk Aversion. 
A)  Addiction. 
B)  Melioration. 
C)  Loss Aversion. 
D)  Risk Aversion.

A tendency to broadly bracket decisions may be evidence of

If my preferences are given by $U=\ln (x)$ then my coefficient of relative risk aversion increases as my income increases.

Narrow bracketing leads individuals to sub-optimal choices when there is a characteristic that is only present in a group of objects, but not present in each individual object.

An individual is risk-loving if his utility function is given by which of the following functional forms:

Choice bracketing refers to:

Narrow bracketing of decisions and melioration is the only way to explain addictive behavior.

Rational choice theory already assumes that individuals bracket decisions in certain ways.

Suppose my preferences are given by $U=\ln (x)$ . a. What is my coefficient of absolute risk aversion? $R_{R}=1$

When an individual focuses on short-term aspects of a decision at the expense of the longterm aspects, then this is called:

Rationality, Irrationality, and Rationalization

Transaction Utility and Consumer Pricing

Mental Accounting

Status Quo Bias and Default Options

The Winners Curse and Auction Behavior

Representativeness and Availability

Confirmation and Overconfidence

Decision Under Risk and Uncertainty

Prospect Theory and Decision Under Risk or Uncertainty

Disagreeing With Ourselves: Projection and Hindsight Biases

Naïve Procrastination

Committing and Uncommitting

Selfishness and Altruism

Fairness and Psychological Games

Trust and Reciprocity

Filters

Exam 6: Bracketing Decisions

A tendency to broadly bracket decisions may be evidence of

If my preferences are given by U=ln⁡(x)U=\ln (x)U=ln(x) then my coefficient of relative risk aversion increases as my income increases.

Narrow bracketing leads individuals to sub-optimal choices when there is a characteristic that is only present in a group of objects, but not present in each individual object.

An individual is risk-loving if his utility function is given by which of the following functional forms:

Choice bracketing refers to:

Narrow bracketing of decisions and melioration is the only way to explain addictive behavior.

Rational choice theory already assumes that individuals bracket decisions in certain ways.

Suppose my preferences are given by U=ln⁡(x)U=\ln (x)U=ln(x) . a. What is my coefficient of absolute risk aversion? RR=1R_{R}=1RR​=1

When an individual focuses on short-term aspects of a decision at the expense of the longterm aspects, then this is called:

Rationality, Irrationality, and Rationalization

Transaction Utility and Consumer Pricing

Mental Accounting

Status Quo Bias and Default Options

The Winners Curse and Auction Behavior

Representativeness and Availability

Confirmation and Overconfidence

Decision Under Risk and Uncertainty

Prospect Theory and Decision Under Risk or Uncertainty

Disagreeing With Ourselves: Projection and Hindsight Biases

Naïve Procrastination

Committing and Uncommitting

Selfishness and Altruism

Fairness and Psychological Games

Trust and Reciprocity

Filters

If my preferences are given by $U=\ln (x)$ then my coefficient of relative risk aversion increases as my income increases.

Suppose my preferences are given by $U=\ln (x)$ . a. What is my coefficient of absolute risk aversion? $R_{R}=1$