Exercise 9.6 - Weight Gains and Losses. Jenny has reference-dependent preferences over mugs (m) and wealth (w), with reference points equal to her current endowments of each: three mugs and $100 of wealth. Her utility function is: U((m, w) | (3, 100)) = 5m+w+nv(5m | 15) + v(w | 100) where > 0 and v(x | 1) = {(2^2(x-1) n if x > r v) if x