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Suppose a person must choose between the following two options: Option A: 50% chance to gain $X, 50% chance to get $0 Option B: 60%
Suppose a person must choose between the following two options: Option A: 50% chance to gain $X, 50% chance to get $0 Option B: 60% chance to gain $100, 20% chance to lose $100, and 20% chance to lose $10 Suppose the person maximizes expected value except that she has loss aversion where losses are weighted twice as heavily as gains (i.e., = 2). What value of X would make the person just indifferent between these two options? \
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