6. Behavioral Economics concepts: a. Suppose that two sales

6. Behavioral Economics concepts: a. Suppose that two sales.
6. Behavioral Economics concepts: a. Suppose that two sales representatives are trying to sell insulation for peoples homes. Sales rep. A tellspeople You will save big money by replacing the insulation in your home. Sales rep. B tells people You arelosing money by not replacing the insulation in your home. If Sales rep B sells more insulation (and the salesreps are identical is all other respects), we might attribute sales rep B s higher sales to what behavioraleconomics concept?b. Suppose that studies indicate that most people , if given a choice between $50 today and $100 a year fromtoday, would choose the $50 today, but that, if given a choice between $50 nine years from today and $100 tenyears from today, would choose the $100 ten years from today. This is an example of ___________________discounting. c. Two identical restaurants have identical menus and identical wine lists, except that restaurant A lists its menuitems and wines from most expensive to least expensive, while restaurant B lists its menu items and winesfrom least expensive to most expensive. If restaurant A has higher revenue per customer than restaurant B, wemight attribute this to what behavior economics concept?d. Trevor has decided on a savings plan that he believes is optimal for him. He will save $5,000 this year and$8,000 next year. When next year arrives, however, he decides to save only $5,000. What is the term used todescribe this sort of behavior? e. In an informal survey, students offered a bet on the toss of a fair coin in which they stood to lose $1 if thecoined turn up tails, required a payoff of $1.63 if the coined turned up heads. This implies that the utilityassociated with gaining $1.63 was equal to the disutility of losing $1, and is an example of what behavioraleconomics concept?
6. Behavioral Economics concepts: a. Suppose that two sales