Question
Chris and Cloud are a happy couple who live in Toronto. They both currently work; Chris's net present value of lifetime earnings in Toronto is
Chris and Cloud are a happy couple who live in Toronto. They both currently work; Chris's net present value of lifetime earnings in Toronto is $125,000, while Cloud's is $500,000. The cost of moving to Miami is $25,000 per person. In Miami, their NPVs change. Now, Chris's net present value of lifetime earnings would be $155,000, while Cloud's would be $510,000. Let's assume Chris and Cloud make choices for their combined well-being. Is Chris a tied-mover or a tied-stayer or neither? Is Cloud a tied-mover or a tied-stayer or neither? Please explain why
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