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Presents evidence showing systematic reversals of preference by variations in the framing of problems, contingencies, or outcomes This paper explores the biases that plague the risk management sector of the global economy. Selected illustrations of preference reversals are presented.
Although the properties of v and v summarize a common pattern of choice, they are not universal Though history is replete with examples of healthcare and economic disasters due to such heuristics, individuals and theorists are often reluctant to make changes in their thinking and theories The majority choice in this problem is risk averse
The framing of decisions and the psychology of choice amos tversky
Daniel kahneman science, new series, volume 211, issue 4481 (jan Presents evidence that the psychological principles that govern the perception of decision problems and evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways. In this chapter, we describe decision problems in which people systematically violate the requirements of consistency and coherence, and we trace these violations to the psychological principles that govern the perception of decision problems and the evaluation of options.
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