According to Fehr and Schmidt, If Xⱼ > Xᵢ, Then

question 37

Multiple Choice

According to Fehr and Schmidt, if xⱼ > xᵢ, then an inequality-averse person i would have a utility function like

• A) U_i(x) = x_i
• B) U_i(x) = x_i - b(x_i - x_j)
• C) U_i(x) = x_i - a(x_j - x_i)

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Definitions:

Punctuated Correctly

The practice of correctly using punctuation marks in writing to clarify meaning.

Conjunctions

Words used to connect clauses or sentences or to coordinate words in the same clause, such as "and," "but," and "or."

Conjunctive Adverbs

Adverbs that function to connect two independent clauses, providing a transition that indicates a relationship between them, such as contrast or cause and effect.

Punctuated Correctly

Phrasing that has been correctly marked with commas, periods, and other punctuation marks to clarify meaning and enhance readability.