ECON4423
Peter McGee
Problem Set #4
This problem set is due by the end of lecture (1:45 PM) on Thursday, 5 May.
1. Luke is endowed with some tokens, which he can allocate between himself and his Uncle
x
p
Owen. Each unit of Lukes own consumption ( L ) can

Behavioral Economics Review
1. List and briefly explain the 4 components of the editing stage of Prospect Theory?
(8 points)
Coding people perceive outcomes as either gains or losses, relative to some
neutral reference position. The reference point usual

Game Theory
Game theory helps to model
strategic behavior by agents who
understand that their actions affect
the actions of other agents.
2010 W. W. Norton & Company, Inc.
1
What is a Game?
A game consists of
a set of players
a set of strategies for ea

Game Theory
Game theory helps to model
strategic behavior by agents who
understand that their actions affect
the actions of other agents.
2010 W. W. Norton & Company, Inc.
1
What is a Game?
A game consists of
a set of players
a set of strategies for ea

ECON4423
Peter McGee
Problem Set #3
This problem set is due by the end of lecture (4:30 PM) on Thursday, 21 April.
1. Many people display something like hyperbolic discounting. Some businesses thrive on
supporting this sort of short-term excess. For examp

Problems
31.
The Accuweather Corporation manufacturers barometers and thermometers
for weather forecasters. In an attempt to forecast its future needs for mercury,
accuweathers chief estimated average monthly mercury needs as:
N=500+10X
Where N= monthly m