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Question 3. (35%) Consider a seller, buyer, and chooser of a mug. The seller owns a mug and is willing to sell it for a

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Question 3. (35%) Consider a seller, buyer, and chooser of a mug. The seller owns a mug and is willing to sell it for a price of .5 dollars or more. The buyer does not own the mug and is willing to pay up to (3 dollars for buying the mug. The chooser owns no mug, and values the mug at 0 dollars (she prefers getting a mug over getting :3 dollars if a: c). The seller, buyer, and chooser are loss averse over money, with the same value function for money: V1? 11320 2'/a: CE

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