Hint | Answer |

(2004) efficiency gains can offset the costs of lower competition | |

Empirically showed that the correlation between wages and education is highest when productivity is hard to observe | |

With risk, we can __ probabilities, with uncertainty we are __ | |

Demonstrated adverse selection in market for lemons | |

Rabin concludes that we should reject EUT for __ stakes | |

A specification of probabilities with which to choose between pure strategies | |

Allais' paradox represents the __ effect. | |

EUT neglects __ probability: which is the state of real life lotteries and uncertainty | |

Steep loss function? Use a _ | |

_ Paradox: Flip a coin as many times until tails - receive 2^no.ofheads. Expected value is infinite but few would pay more than around 25 dollars. | |

A higher frequency of sales __ the chance of collusion | |

Investment by an incumbent changes the rules of (market entry) game | |

e.g. congestion, agglomeration | |

EUT lacks a distinction between __ and __ | |

Shallow loss function? Use a _ | |

A set of strategies where each is the best response to the other | |

Deal or no Deal shows consumers have path dependent risk attitudes | |

In an infinite game, a mixed Bertrand strategy can even produce higher profits than Cournot | |

Even if EUT is criticised, it might be the best description of __ decision making | |

Found consumer choices (in experiments) that systematically undermined EUT | |

A higher ease of detecting deviation __ the chance of collusion | |

Crucially, threats such as limit pricing must be __ in order to deter entry | |

__ axiom of EUT can be undermined by portfolio theory | |

A higher number of firms in a market __ the chance of collusion | |

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