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Two of the decision - making challenges that we discussed are loss aversion and overconfidence, which are very common in decisions involving money. Now let's
Two of the decisionmaking challenges that we discussed are loss aversion and overconfidence, which are very common in decisions involving money. Now let's think about the average pricing strategy that we discussed in this module too. For example, let's think of an average pricing strategy in which a grain producer sells of their expected crop over months between February and November. Would you say that adopting this strategy could reduce or even eliminate the problems related to loss aversion and overconfidence? Why?
Note: make sure to explain separately if and how this strategy would attenuate the effects of loss aversion and overconfidence.
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