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Mathematics, 31.10.2021 03:30 NateTheBeast12

Suppose students at University X are randomly assigned to dorm rooms that house either two students or three students. Knowing that all students would prefer a double rather than a triple room, the director of student housing asks those who were assigned to a triple room how much they would be willing to pay to get a double instead. On average, the director finds that they would pay $200. Drawing on the insights of behavioral economics, you would expect that (on average) students who are initially assigned to a double rather than a triple room be willing to accept $200 to switch to a triple room. This is an illustration of .

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