Please answer these 6 questions based on the reading attached below.
- What are the main differences between prospect theory and utility theory? What are some problems facing each of the theories?
- What is the endowment effect? Provide an example not discussed in the reading
- What is the fourfold pattern of preferences?
Part 5. Questions
- Explain the differences between the kind of utility moral philosophers like Jeremy Bentham discuss and the kind of utility that economists and decision theorists discuss.
- What are some on the main take-aways from Kahneman’s discussion of the experiencing self and the remembering self with respect to the sensation of pain?
- Considering the recent findings about the psychology of memory, how might this change our decision making when planning a vacation (if at all)?