The isolation effect concerns which of the following types of lotteries:
A) Lotteries with non-dichotomous outcomes.
B) Lotteries over small gambles.
C) Lotteries over large gambles.
D) Compound lotteries.

Question

Quizplus · Accepted Answer

The isolation effect refers to the tendency of people to disregard components that are shared among choices, which is particularly relevant in compound lotteries where individuals may isolate and evaluate only the final outcomes rather than the entire structure of the lottery.

The Isolation Effect Concerns Which of the Following Types of Lotteries