According to the rational choice model which of these two events should be valued more by rational consumers: 1: gift of mug valued at $10, 2: finding the mug you thought was lost, which cost you $10 to purchase.
A)Both events should have the same value.
B)Event A
C)Event B
D)There is really no way to rationally decide.

Question

Quizplus · Accepted Answer

According to the rational choice model, both events result in the consumer having a mug valued at $10, so they should be valued equally. The model assumes that consumers make decisions to maximize their utility based on the final outcomes, not on the basis of how those outcomes are achieved.

According to the Rational Choice Model Which of These Two