A response to Prelec

In Adam Oliver (ed.), Essays in Behavioural Public Policy. Cambridge: Cambridge University Press. pp. 228-33 (2013)
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At the heart of Drazen Prelec’s chapter is the distinction between outcome utility and diagnostic utility. There is a particular distinction in the literature on causal networks (Pearl 2000), namely the distinction between observing and intervening, that maps onto Prelec’s distinction between diagnostic and outcome utility. I will explore the connection between both frameworks.
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