Question: 2. This question asks you to think about narrow bracketing and risky choice using actual reference-dependent utility functions from earlier in the class. Suppose an

2. This question asks you to think about narrow bracketing and

risky choice using actual reference-dependent utility functions from earlier in the class.

2. This question asks you to think about narrow bracketing and risky choice using actual reference-dependent utility functions from earlier in the class. Suppose an investor has a utility function given by v(w -r), where w is money and r is her reference point in money. Her reference point is her current wealth, normalized to zero. The function v satisfies v (x) = x for x > 0 and v (x) - 2x for x

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