Amanda and Brenda Are Considering Playing a Game Called Matching

question 87

Multiple Choice

Amanda and Brenda are considering playing a game called Matching Twenties.In this game,Amanda and Brenda will each place a $20 bill on the table.Both players will then toss a fair coin.If both Amanda and Brenda toss heads or both Amanda and Brenda toss tails,Amanda wins the $40 on the table.If one woman tosses heads and the other tosses tails,Brenda wins the $40 on the table.
Amanda decides that she is not willing to play this game because a loss of $20 to Brenda would cause her to lose more utility than she would gain if she won $20 from Brenda.Which concept best explains Amanda's choice not to play the game?

• A) hedonic editing
• B) gain aversion
• C) loss aversion
• D) signaling
• E) gain-loss asymmetry

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Definitions:

Decentralization

The distribution of power across all levels of the organization.

Downsizing

The process of reducing the number of employees in an organization, often to cut costs or improve efficiency.

Effectiveness

The degree to which something is successful in producing a desired result, measured by the achievement of goals.

Adaptability

describes the capacity to adjust to new conditions, challenges, or environments, often necessary for personal growth or organizational survival.