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...Ridiculous Ep. 5: The Future
Behavioral Grooves Podcast
Adaptation and Reference Points
Psychometric curves are more malleable than predicted by prospect theory, changing shape in different ways based on context. Reference dependence plays a crucial role, as people evaluate options as losses or gains relative to a chosen reference point, impacting their preferences. This concept aligns with how brains function, and can be analogous to vision adaptation in a dark room.
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