The Causes of Preference Reversal.

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Tversky, Amos; Slovic, Paul; Kahneman, Daniel;
  • Journal: American Economic Review,volume 80,issue 1 March,pages204-17
  • Subject:
    arxiv: Computer Science::Computer Science and Game Theory

Observed preference reversal cannot be adequately explained by violations of independence, the reduction axiom, or transitivity. The primary cause of preference reversal is the failure of procedure invariance, especially the overpricing of low-probability, high-payoff b... View more
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