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26 When people use anchoring and adjustment to estimate something, the adjustment they make when they receive new information

The present aim standard of rationality accommodates a much range of observed behavior than traditional economic models, but
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26. too small

The anchor is chosen which is then adjusted to reflect new information and analysis. However, people tend to adjust their anchors insufficiently and tend to end up with approximations that are mostly biased.

27. broader; flexible

Present aim moder aims to cover a broader range of observed behaviour however being highly flexible is also a potentioal liability nonetheless.

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