The common difference effect is:
A) A preference reversal.
B) Loss aversion.
C) Violation of transitivity.
D) Violation of stationarity.

Name: The common difference effect is: A) A preference reversal. B) Loss aversion. C) Violation of transitivity. D) Violation of stationarity.
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Question

Quizplus · Accepted Answer

The common difference effect refers to a situation where people's preferences between two delayed rewards change when the delays are increased by the same amount, violating the principle of stationarity.

The Common Difference Effect Is