One set of prospects considered by Loomes, Starmer and Sugden (1991) was the following: A = (0,
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One set of prospects considered by Loomes, Starmer and Sugden (1991) was the following: A = (0, $10; 0.6, $3), B = (0.7, $7.50; 0.3, $1) and C = (1, $5). What would you choose between A and B, B and C, and A and C? How can regret theory help us explain choices in this case?
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