Q16.4 Confronted with a choice between $50 today or $100 1 year from now, economic experiments suggest

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Q16.4 Confronted with a choice between $50 today or $100 1 year from now, economic experiments suggest that the vast majority of people will take the $50 today.

At the same time, economic experiments show that most people will opt to take $100 in 10 years over $50 in 9 years. Is such behavior rational? Explain why or why not.

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Managerial Economics

ISBN: 1518

14th Revised Edition

Authors: Mark Hirschey

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