Question

Martha and Sarah have the same preferences and incomes. Martha arrived at the theater to see a play, and she discovered that she had lost the $ 10 ticket she had purchased earlier. Sarah also just arrived at the theater planning to buy a ticket to see the same play, when she discovered that she had lost a $ 10 bill from her wallet. If both Martha and Sarah still have enough money to pay for a ticket, is one of them more likely than the other to go ahead and see the play anyway?

Answer 1

Answer: Both of them would make the same decision

Explanation: Considering that they are two persons with the same incomes and the same interests, they also lost $ 10 in one way or another. That means, roughly, they will both make the same decision and pay another $ 10 to see the play that interests them. So the cost is the same, and the same is the benefit of watching the show with both Martha and Sarah because they both have the same preferences.