Podcast
Questions and Answers
What is a common problem according to the text?
What is a common problem according to the text?
- Lack of interest in market exchange
- Overwhelming commitment to good intentions
- Strict government regulations
- Procrastination and self-control issues (correct)
Which principle of Behavioral Economics involves caring about the actions, intentions, and payoffs of others?
Which principle of Behavioral Economics involves caring about the actions, intentions, and payoffs of others?
- Principle 4 (correct)
- Principle 6
- Principle 5
- Principle 3
What type of example is given to highlight the importance of social preferences in Behavioral Economics?
What type of example is given to highlight the importance of social preferences in Behavioral Economics?
- Mathematical puzzles
- Ultimatum Game (correct)
- Public speaking anxiety
- Weightlifting competitions
What can partially help protect individuals from behavioral biases?
What can partially help protect individuals from behavioral biases?
Which statement best summarizes the practical implications of heavy-handed paternalism according to the text?
Which statement best summarizes the practical implications of heavy-handed paternalism according to the text?
Why do our final estimates tend to get biased by anchoring heuristics?
Why do our final estimates tend to get biased by anchoring heuristics?
What concept does the quote 'If we plant an idea or a number in your head, it has a very big effect on subsequent judgements' relate to?
What concept does the quote 'If we plant an idea or a number in your head, it has a very big effect on subsequent judgements' relate to?
In what way can 'decoys' be used to influence decision-making in example situations like the ones mentioned?
In what way can 'decoys' be used to influence decision-making in example situations like the ones mentioned?
How does the Availability Bias impact people's judgments?
How does the Availability Bias impact people's judgments?
Why do recent events have a greater impact on behavior according to the Availability Bias?
Why do recent events have a greater impact on behavior according to the Availability Bias?
'Lynda is 31 years old, single, outspoken and very bright.' What type of cognitive bias is this an example of?
'Lynda is 31 years old, single, outspoken and very bright.' What type of cognitive bias is this an example of?
According to Prospect Theory, what is the concept of reference-dependent utility based on?
According to Prospect Theory, what is the concept of reference-dependent utility based on?
In Prospect Theory, what does 'loss aversion' refer to?
In Prospect Theory, what does 'loss aversion' refer to?
How does the value function in Prospect Theory differ between gains and losses?
How does the value function in Prospect Theory differ between gains and losses?
What aspect of individual decision-making does Prospect Theory challenge?
What aspect of individual decision-making does Prospect Theory challenge?
What role do reference points play in Prospect Theory's analysis of decision-making?
What role do reference points play in Prospect Theory's analysis of decision-making?
How does Prospect Theory explain people's willingness to take risks to exceed a reference point?
How does Prospect Theory explain people's willingness to take risks to exceed a reference point?
Which type of preferences are time-consistent according to economists?
Which type of preferences are time-consistent according to economists?
In the hyperbolic discounting model, what does the term '𝛽' represent?
In the hyperbolic discounting model, what does the term '𝛽' represent?
What is the key characteristic of present-biased preferences?
What is the key characteristic of present-biased preferences?
What phenomenon does hyperbolic discounting aim to capture?
What phenomenon does hyperbolic discounting aim to capture?
How does hyperbolic discounting differ from exponential discounting?
How does hyperbolic discounting differ from exponential discounting?
What does the beta-delta model in hyperbolic discounting aim to explain?
What does the beta-delta model in hyperbolic discounting aim to explain?
What is the endowment effect?
What is the endowment effect?
What do experiments typically find regarding the gap between selling and buying prices in relation to the endowment effect?
What do experiments typically find regarding the gap between selling and buying prices in relation to the endowment effect?
In the context of the mug experiment, why do owners usually value their mugs more highly according to standard theory?
In the context of the mug experiment, why do owners usually value their mugs more highly according to standard theory?
What would be more surprising based on standard, reference-independent theory when randomly giving half of the students mugs and eliciting buying and selling prices?
What would be more surprising based on standard, reference-independent theory when randomly giving half of the students mugs and eliciting buying and selling prices?
How can the endowment effect be conceptualized?
How can the endowment effect be conceptualized?
Why might there be a large gap between buying and selling prices in the context of the endowment effect?
Why might there be a large gap between buying and selling prices in the context of the endowment effect?
