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Episode 328: Ask Noah Show 328

Ask Noah Show

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The Risk Aversion and the Certainty Effect

There are, obviously there's a myriad of ways to classify people and their personalities. When we're talking about specific critical situations like this, we tend to use the scale of risk aversion or temporal discounting. People who fall very heavily in what's called the certainty effect make decisions based on keeping your options open. The reason why it's important to understand these types of personalities is because that will help you understand why they make the decisions they do.

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