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Question
Regina and Brenda are considering playing a game called Matching Twenties. In this game, Regina and Brenda will each place a $20 bill on the table. Both players will then toss a fair coin. If both Regina and Brenda toss heads or both Regina and Brenda toss tails, Regina wins the $40 on the table. If one woman tosses heads and the other tosses tails, Brenda wins the $40 on the table.
Regina decides that she is not willing to play this game because a loss of $20 to Brenda would cause her to lose more utility than she would gain if she won $20 from Brenda. Which concept best explains Reginas choice not to play the game?
a. hedonic editing
b. gain aversion
c. prospect theory
d. signaling
e. gain-loss asymmetry
Answer
This answer is hidden. It contains 55 characters.
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