Jameel is offered two sets of choices. Choice A. Take a $100 check that can be cashed
Question:
Choice A. Take a $100 check that can be cashed today, or a $200 certified check that can be cashed in two years.
Choice B. Take a $100 certified check that can be cashed in six years, or a $200 check that can be cashed in eight years.
a. Put yourself in Jameel's shoes. Which option would you choose from Choice A? From Choice B?
b. Jameel chooses the $100 check in Choice A, and the $200 check in Choice B. Explain how Jameel's choices are not time consistent.
c. Which systematic bias has Jameel fallen victim to?
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a Individual response b In Choice A Jameel is unwilling ...View the full answer
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Related Book For 
Microeconomics
ISBN: 978-1464187025
2nd edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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