You can choose any of the plans 1 do nothing 600 will

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you won’t like.  You can choose any of the plans.   1. Do nothing, 600 will die 2. 400 will die  3. 1/3 chance saving all, 2/3 chance everyone dies Generally, people will go with plan A in the first part.  In the second  part, they DON’T go with plan A, even though it’s the same plan.  But the  second one is FRAMED that 400 will die and we hate sure bad things.  People won’t accept that 400 will die  they want a fighting chance that  some people will be saved.  We have an unwillingness to lie down and  accept a abd outcome.   We become a lot more risk taking when things are framed in terms  of death or the bad outcome.  More framing You want a tripod and a jacket.   Store 1: Jacket 125, camera 23 Store 2: Jacket 125, camera 11.50 The store owner of 1 tells them it is half off in the other store.  People do it. In second scenario, the camera is the same but the jacket is 11  dollars off.  People don’t do it!!! Even though it’s the same amount of  savings!!
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We think about things in terms of PROPORTIONS.  Its not rational.   Sunk cost 1.  Bought tickets tickets lost. 2.  Plan to buy  money missing.  But you can pay with a credit card.  These scenarios are both the same amount of money.  Most times,  in scenario one, they wont pay again for a ticket.  But if they lost the money  that wasn’t specifically allocated, then they buy the tickets.  They are  FRAMING, drawing the information about what’s ok to spend and what’s not  ok to spend from the situation.   People hate to take that specific, painful loss  stock goes up, sell it! stocks that are going down, hold onto it because you don’t want to  take a loss.   Endowment effect There is a shirt.  Ask the absolute maximum you would pay for a  shirt. Let’s say its worth 12 to you.   Once you HAVE the shirt, its worth MORE to them than you would  have said initially.  Now its worth to you 15.   Traffic court:  1. 75 chance of losing, lose 100 2. 25 chance of winning, zero 3. let it go and pay Game show: 1. win 25 dollars for sure 2. 25 percent 100 3. 70 chance at zero Most people will contest the traffic ticket but just take the 25 dollars.  Both are the same odds.   We are risk seeking for losses, and risk averse  for gains.   When there is a sure thing we will take it.   Base rate problem We aren’t good at taking prevalence into account.  Like we think we  have a lot of diseases.  Were not good at multiplying small numbers, so 
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