The option-value principle can be roughly stated as more choices can't make a person worse off.. Are there any exceptions to this rule? Choose all that apply.
a. No.
b. Yes, in strategic situations.
c. Yes, in situations involving self-control.
d. Yes, for certain complicated financial derivatives.
Question 2
Which of the following weights on utility (over four periods starting with the current one) provide an illustration of hyperbolic discounting that could well lead to inconsistent choices over time?
a. 1, .5, .25, .125.
b. 1, .25, .0625, .015625.
c. 1, .8, .72, .648.
d. 1, 1, 1, 1.
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