EXPLAIN the concepts AND then give an example of an additive upward counterfactual, and of a subtractive downward counterfactual from your own life experiences.
• What is ONE function/purpose/use of counterfactual thinking? That is, why do we engage in it? SECONDLY, WHEN do we typically engage in it? (What circumstances trigger this kind of thinking?) Please give ONE example from your own life.
• Explain the concept of rarity assumption as it relates to the discounting of a certain type of information, and provide an example from your everyday life.
• According to theories presented in our course, WHAT might be a cognitive explanation for why some people refuse to vaccinate their children (which is the objective/rational thing to do)? Briefly explain your answer. You must provide at LEAST ONE named theory/concept from our course to explain this.
• Explain the “certainty effect” in relation to Superfund environmental clean-up efforts? Is there an example or application of the “certainty effect” at work in your own life? Try to identify one.
• In 3 sentences or fewer, explain the difference between expected value and expected utility theories.
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