An Economics Professor Is Running an Experiment in Class, Simulating

question 26

Essay

An economics professor is running an experiment in class, simulating auctions. Each student is told that the amount of money she has to spend is equal to 100 minus the last two digits of her social security number. The professor is auctioning off fictitious products. After the experiment is run, the professor is perplexed by the results, since they do not match that predicted by theory. Help the professor understand the results obtained from the experiment.

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Definitions:

Constitutional Adaptation

The process through which legal interpretations of the Constitution evolve over time to address new social, political, and technological realities.

Federal Judicial Selection

The process by which judges and justices are appointed to federal courts in the United States, typically involving nomination by the President and confirmation by the Senate.

Precedent

An earlier event, decision, or action that is regarded as an example or guide to be considered in subsequent similar circumstances.