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The mechanics of choice

Explain the mechanics of choice as it is described in the reading and lecture. How does expected value differ from expected utility and prospect theory? Discuss aspects like loss aversion and framing effect. What is a heuristic? Explain the examples cited by the author. Put these ideas in the context of the two-system theory of the brain discussed in the reading for unit 8. Based on this picture of the brain, what strategies help us to make better decisions?
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