Patrick and Rachel live in Seattle. Patrick’s net present value of lifetime earnings in Seattle is $125,000, while Rachel’s is $500,000. The cost of moving to Atlanta is $25,000 per person. In Atlanta, Patrick’s net present value of lifetime earnings would be $155,000, while Rachel’s would be $510,000. If Patrick and Rachel choose where to live based on their joint well-being, will they move to Atlanta? Is Patrick a tied-mover or a tied-stayer or neither? Is Rachel a tied-mover or a tied-stayer or neither?
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Patrick and Rachel live in Seattle. Patrick’s net present value of lifetime earnings in Seattle is $...
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