Question: a)What is framing effect? b)Give an example to framing effect under risky decision making. c)Can standard economic theory explain risk-preference reversals? Why or why not?

a)What is framing effect?

b)Give an example to framing effect under risky decision making.

c)Can standard economic theory explain risk-preference reversals?

Why or why not? Use graphical analysis to complement your explanation.

d)Can prospect theory explain risk-preference reversals?

Why or why not? Use graphical analysis to complement explanation.

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