Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 8 - Behavioral Economics - Discussion Questions - Page 192: 8

Answer

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Work Step by Step

Since the prospect theory states that people worry more about their loses than their gains, the people in New Jersey would likely try to get their loses back, and the people in Pennsylvania would likely choose a low cost policy.
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