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A preference reversal occurs when the same risky or uncertain choices are offered in different forms and the preferred choice changes. As such, preference reversals belong to a collection of phenomena, known as choice anomalies, that suggest that decision making is not always rational. The basic laboratory form of the preference reversal as a choice between gambles is described along with examples of preference reversals in medical decision making and other domains. Theories of preference reversal and their implications are discussed.

Choice between Gambles

Expected utility theories of decision making assume that if individuals have sufficient information and are given sufficient time to process that information, they will make choices that maximize their interests. Since the choices people make reflect their best interests, those choices should be ...

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