Problem
Consider the following two scenarios:
a. You have decided to see a show for which tickets cost $20. You bought your ticket in advance, but as you enter the theater, you find that you have lost the ticket. You did not make a note of your seat number, and the ticket is not recoverable or refundable in any way. Would you pay another $20 for a second ticket?
b. You have decided to see a show whose tickets cost $20. As you open your wallet to pay for the ticket, you discover that you have lost a $20 bill. Would you still buy a ticket to see the show?
Many individuals would not purchase a second ticket under the first scenario, but they would under the second. Explain why this is inconsistent with expected utility. How would you explain this kind of behavior?
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.