Naifs and sophisticates always violate either the dominance property or the property of independence of irrelevant alternatives.

Question

Quizplus · Accepted Answer

Naifs and sophisticates refer to types of decision-makers in behavioral economics, not to properties of choices or alternatives themselves. The dominance property and the property of independence of irrelevant alternatives are criteria used to evaluate choices in decision theory, not characteristics inherently violated by types of decision-makers.

Naifs and Sophisticates Always Violate Either the Dominance Property or the Property