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Risk-averse persons sometimes prefer to play some gambles even if they know that those gambles are not fair, that is, on average people lose by
Risk-averse persons sometimes prefer to play some gambles even if they know that those gambles are not fair, that is, on average people lose by playing them. What is one plausible explanation for this seemingly paradoxical phenomenon? Multiple Choice People's actions are not reasonable. Gambling has entertaining effects which are not treated explicitly as part of the payoffs. None of the statements is correct. The economic theory of uncertainty is not correct
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