North-Holland Pub. Co.
This paper reports the results of a survey conducted~ in the Massachusetts Institute of Technology campus dining hall~ The aim of the survey was to delineate students' perceptions of marginal cost,~ in a very specific, but not uncommon, situation. A majority of the respondents' answers suggest a complete misunderstanding of the relevant marginal costs. This study attempts to find out how individuals perceive ~their opportunity sets in a specific choice situation. The individuals studied are ~students who have meal plans at the M.LT. dining halls. Each term students pay a high price for the meals until a certain number of meals have been purchased. Thereafter there is a substantial discount of 42 percent. For a student who knows he will pass the limit, the marginal cost of an additional meal is the discounted price.
Are MIT Students Rational?,
Journal of Economic Behavior and Organization
Available at: https://scholarship.law.bu.edu/faculty_scholarship/1038