Behavioral economists argue that some human behavior does not fit neatly into the traditional economic framework. 1.

Question:

Behavioral economists argue that some human behavior does not fit neatly into the traditional economic framework.
1. Explain how utility received from relative rank can make someone willing to accept a lower income level.
2. Describe compartmentalizing.
3. State the endowment effect.
4. Describe how experience influences the size of the endowment effect.