2: Heuristics Please answer either version A or version B of the question below. Version A. Discuss a setting other than utility pricing or taxes (which we covered extensively in class) in which you think ironing and/or spotlighting biases might affect how individuals make decisions. Sketch how you might go about providing evidence for these biases (e.g. through surveys, experiments or regressions using naturally occurring variation). Version B. Discuss a setting other than spending out of SNAP or buying gasoline (which we covered extensively in class) in which you think mental accounting might affect how individuals make decisions. Sketch how you might go about providing evidence for mental accounting, taking care to differentiate it from income effects and other neoclassical explanations (e.g., through surveys, experiments or regressions using naturally occurring variation). 1This is roughly correct for the US. 1