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Essay

Preference Reversal And Expert

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Hugh G

 

Date added:

December 24, 2013

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 283

 

Was viewed:

1207 times

 

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Essay content:

By adopting a strategy of maximizing the chance of any payoff in both the choice and pricing condition and giving that option the higher rating on both scales, preference reversal would be avoided. Conversely, considering only the greatest potential for gain in each condition would have the same effect...
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In the first case of maximizing the chance of payoff, the safe bet (H) would be favored over the longshot (L) and the pricing would also favor the safe bet (Ch) over the longshot (Cl) (i.e. Ch Cl). Yet when any amount of money (X) is offered at a %100 probability, that option would be selected over both H and L...
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