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A consumer has reference-dependent preferences over cars and money. Her utility is defined over two consumption dimensions, cars (dimension 1) and money (dimension 2), with
A consumer has reference-dependent preferences over cars and money. Her utility is defined over two consumption dimensions, cars (dimension 1) and money (dimension 2), with consumption utility m(C1,C2) = 2c1 + C2 Her gain-loss utility function v takes the form = {2x for 0 x
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