Private information is a situation in which
A) two parties to an exchange have information that is available to outsiders if they ask.
B) one party to an exchange has information that is not available to the other.
C) the marginal cost of a person's obtaining additional information is zero.
D) the marginal cost of making information available to one more person is zero.
Question 2
If Sean thinks that the choice between going to Olive Garden or Red Lobster is simply too confusing, a behavioral economist will explain that Sean is showing ________.
A) the endowment effect
B) bounded rationality
C) bounded self-interest
D) bounded will power
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