One of the implications of S-shaped value function is that it matters how outcomes are bundled....

One of the implications of S-shaped value function is that it matters how outcomes are bundled. People are less dissatisfied when multiple losses are integrated than they are segregated. By constructing graphs (using S-shaped value functions), show that In other words, a $25 loss plus an additional $50 loss is worse than a $75 loss.

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Rahul Sunny answered 1 year ago

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