Respondents who are well-off show a classic decision making bias, as Thaler had originally reported. They will pay more for the same beer in the context of a fancy resort. Much like Alex’s behavior, this difference in willingness to pay is an inconsistency. A beer is a beer (and they’ll be consuming that same beer on that same beach). That beer will quench your thirst equally whether it comes from the grocery store or the resort. The well off, however, not sure what to pay, use the context to come up with a value. The poor behaved quite differently. Their reported willingness to pay was much
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