Question: 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?