Discuss advantages and disadvantages of the behavioral model


Problem

1. Name two advantages and two disadvantages of the behavioral model.

2. In a recent study, when asked to choose between an iPod and $100, people were more likely to choose the money. But when they were given an iPod and then asked if they would trade it for $100, they were more likely to choose the iPod.

a. What effect does this reflect?

b. Is this behavior rational?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Discuss advantages and disadvantages of the behavioral model
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