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Please help solve problem a and b, thank you. Show mathematically how loss aversion can help explain the result of the endowment effect experiment. We

Please help solve problem a and b, thank you.

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Show mathematically how loss aversion can help explain the result of the endowment effect experiment. We will break this down into several steps. First, some assumptions and notation: Suppose the value of a certain bundle of cash (6) and mugs (m) given a reference point in cash (Tc ) and a reference point in mugs (Tm ) is v(c,m|rc,7'm) = c + m + p,(c TC) + \"(m rm), where (z): z .220 p. Az z

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