1. Describe VALUE-MAXIMATIONAL or EXPECTED UTILITY THEORIES and DECISION MAKING as it relates to gambling. 2....

1. Describe VALUE-MAXIMATIONAL or EXPECTED UTILITY THEORIES and DECISION MAKING as it relates to gambling.

2. Describe CONSUMER THEORY as it relates to gambling.

3. Describe MARXIAN THEORY as it relates to gambling.

4. Using the critiques of economic theory as a guide, which theory theories do you support? PROVIDE REASONS FOR YOUR SUPPORT. If you do not subscribe to any of the theories, EXPLAIN WHY NOT.

Expert Solution

Gambling is a widespread form of entertainment that may afford unique insights into the interaction between cognition and emotion in human decision-making. It is also a behaviour that can become harmful, and potentially addictive, in a minority of individuals. Gambling is also a behaviour that can spiral out of control in some individuals. As gambling becomes excessive, there are observable harms including debt, illegal activity and interpersonal conflict.The behaviour analysis of decision-making has studied three realms of behaviour that play a role in gambling: risk taking, behavioural persistence and self-control.

Contrary to a previous claim that borrowing and lending in perfect capital markets rules out a demand for gambles.When the rates of interest and time preference are equal, agents seek to gamble unless income falls in a finite set of values. When they differ, there is a range of incomes where gambles are desired.

Rahul Sunny answered 2 years ago

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1. Describe VALUE-MAXIMATIONAL or EXPECTED UTILITY THEORIES and DECISION MAKING as it relates to gambling. 2....

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Expert Solution

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