Without urgent repairs, the iconic Sydney Opera House will collapse. Sydneysiders were asked two questions in a survey.

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Without urgent repairs, the iconic Sydney Opera House willcollapse. Sydneysiders were asked two questions in a survey.Question 1: What is the maximum amount you would be willing to payto prevent the collapse of the Sydney Opera House? The surveyresult was $500 per person (on average). Question 2: If the SydneyOpera House were to collapse, what is the minimum compensation youwould accept for the loss of this building? The survey result was$200 per person (on average). Are the people answering this surveythinking rationally (from a neoclassical economist’s perspective)?Why? How might a behavioural economist explain the differences intheir responses?