Ejercicio Short Question 2 · Economia de L'empresa UPF 2011
Tema: Decisió econòmica racional i biaixos · Del examen Final Exam Business Economics - December 2011 (2011)
Enunciado
Short Question 2 (6 points). Disclosure of negative news and the asymmetric value function
During a political campaign, a candidate sequentially acknowledged multiple personal scandals over several months, revealing them one at a time. This communication strategy can be explained by applying the principles of the asymmetric value function from Prospect Theory.
True or False? Provide a concise justification.
True
False
Solución
Según los criterios oficiales de corrección
This communication strategy can be explained by applying the principles of the asymmetric value function from Prospect Theory. True or False?
Solución: False
Provide a concise justification.
Solución: The value function is convex for losses (), so losses should be aggregated (announced all together) rather than segregated (disclosed sequentially) to minimize perceived negative utility.
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