Question: PROBLEM (2)(Loss Averse Reference Dependent Preferences) Please no chat gpt PROBLEM (2) (Loss Averse Reference Dependent Preferences) A decision maker has additive loss averse reference

PROBLEM (2)(Loss Averse Reference Dependent Preferences) Please no chat gpt

PROBLEM (2) (Loss Averse Reference Dependent Preferences) A decision maker has additive loss averse reference dependent preferences on a set of alternatives (each of which is composed of two goods). The utility of an alternative (x1,x2) from the perspective of the reference point (ri,12) U((x1,x2) 1 (r1,12)) = { (x1- mi) if x1 2 11 + { 2(x2- 12) if X2 2 12 2(x1- m) if xi

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