prompt 2 (reference poinnt; hedonic treadmill)

prompt 2 (reference poinnt; hedonic treadmill) - Ryan...

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Ryan Wisneski ECO3933 January 31 st , 2011 1. Give 1 example of a reference point that is not drawn from expectations When we look at expectations we see the most likely event to happen in a case of uncertainty. These expectations can, or can’t not, be realistic as we are dealing will beliefs that are based on the outcomes in the future. This reality can become extremely skewed when we try to draw a reference point from these expectations based on the uncertainty. An example would be someone comparing the current prices of an item to that of future prices that are all speculation. To draw a reference point from these unobtainable future prices we base our decision to either buy the item or wait for the price to fall from our own prediction. To find a more rational way to reference items we must make sure that our reference comes from a concrete form and not future expectations. When buying a house we must look at the housing
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