econ215 answer 4 econ questions

Answer 4 econ questions

1. How does hyperbolic discounting differ from exponential discounting, and what implications does it have?

2. what are magnitude effects in relation to discount rates? Why are they significant?

3. What is the delay/speed-up asymmetry?

4. Paying for health insurance can be seen as a form of mental accounting (also reflecting loss aversion). It can also be seen as an instance of ‘choosing not to choose’. What is ‘choosing not to choose’ and how can it be represented as consistent with the traditional idea of ‘rational’ behaviour?

All the work must be original

Turnitin report is required

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