Question

Levitt and Dubner describe two studies, which provided empirical support for Gary Becker’s prediction that even family members would engage in what might be termed strategic altruism. The first study showed that an elderly parent in a retirement home is more likely to be visited by his grown children if they are expecting a sizable inheritance. The second study produced evidence that the number of visits increases when there is competition between siblings for a parent’s estate. Use marginal benefit-marginal cost analysis to explain these observed outcomes.

super freakonomics!!!

Answer 1

Answer:-

Marginal cost of visiting oldsters in retirement homes isn't as high as is that the marginal profit. 1st outcome is a lot of acceptable as a result of during this case a better marginal profit is predicted and consequently, an individual can keep visiting retirement home till margianl price of visiting retirement house is but the merginal profit expected.

In case of a lot of siblings, the property is predicted ot be distributed equally amongst siblngs however if oldsters square measure given emotional comfort, they will provide his entire property ot one kid however it's scenario base.d Accordingly, there's lesser marginal profit expected. thus monetary value of visiting retirement home being same, an individual can visit a lot of oftentimes once there's sizeable inheritance.