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       #Post#: 12--------------------------------------------------
       Question 2
   DIR By: Federico_Trombetta
       Date: November 6, 2012, 6:08 am
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       Hi everyone!
       I have a short question about problem 2: instead of comparing
       the status quo utility and the ex post utility, can we find the
       marginal rate of substitution between the two goods? Since
       dx2/dx1 = -(MU1/MU2), and dx1 = 1 in both cases, this should
       express the variation in x2 that maintains me on the same
       indifference curve.
       Is it correct?
       However, this should be method easy to apply only in a 2 goods
       example, so the other one is more general. Am I right?
       Thank you very much!!!
       Federico
       #Post#: 13--------------------------------------------------
       Re: Question 2
   DIR By: Julia.Wirtz
       Date: November 6, 2012, 3:09 pm
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       Hello!
       Hmm, I'm not sure I understand. Due to the kink in the utility
       function at the reference point it is not possible to take the
       derivative. So it's hard to find marginal rate of substitution
       that applies to the problem (Specifically its 1 before the kink
       and 2 afterwards)
       The ex-ante/ ex-post thing is a way to get around this.
       Julia
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