Micro Left Over Flashcards
1
Q
What does bounded self control mean?
A
bounded self control assumes that consumers are able to exercise self control (but not always). For example favouring SR benefits not better LR benefits.
2
Q
Explain the administrative man theory?
A
This is an addition to homo economicus
The assumptions are: (time, info, choice)
The first alternative that is satisfactory is selected
The decision maker recognises that they perceive the world as simple
The decision maker recognises the need to be comfortable making decisions
without considering every alternative
Decisions could be made by heuristics. Where we are satisficing
3
Q
How do you say assuming nothing changed?
A
Ceteris Paribus
4
Q
A
Ceteris paribus
5
Q
Whaty are the “main policies”
A
