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Economics Marlee has $100 and is going to buy tickets to a Fleet Foxes concert in Atlanta. She found two different websites selling tickets, Fony
Economics Marlee has $100 and is going to buy tickets to a Fleet Foxes concert in Atlanta. She found two different websites selling tickets, Fony Front Seats and Best Tickets. If she buys a $20 ticket from Fony, there is a 60% chance the ticket is fake, but she won't know until she gets to the concert. If she buys a $60 ticket from Best Tickets, the ticket is certainly real. The placement of seats for the tickets are identical. It costs $10 in gas to get to the concert. Marlee's utility function is given by u(x) = va + k, where k equals 100 if Marlee gets to go to the concert, 0 otherwise. (a) Does Marlee buy her ticket from Fony Front Seats or Best Tickets? Why
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