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What would Xiang Yu do?

written by NakedNY on 02-28-2008. no reactions yet.

The above named third century Chinese general helps a behavioral economics professor at MIT explain why too many options are not a good thing. It turns out that “closing a door or an option is experienced as a loss and people are willing pay a price to avoid the emotion of loss”. What this means is that even the most coldly analytic decisions are emotionally driven.

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