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:

Out-of-the-Ordinary

An expression denoting something that deviates from what is typically expected or normal.

Humiliation

The feeling of being put down or made to feel ashamed or embarrassed.

Voyeuristic Tendencies

The inclination towards gaining sexual pleasure from observing others, usually without their consent.

Canadian University

An institution of higher education and research located in Canada, offering undergraduate and postgraduate degrees in various fields.