Exact(17)
Not all dominated options are irrational.
Bullish trading strategies dominated options activity on Humana in the first hours of the trading day.
Despite the slight appreciation in the price of the underlying shares, bearish transactions dominated options activity on the fund.
CNinsure : Bearish investors dominated options trading activity on the insurance intermediary engaged in marketing and selling insurance products in China.
Near-term bearish sentiment dominated options trading on the fund in the first half of the session as investors enacted put butterfly spreads in the April contract.
Forest Laboratories : Bullish investors dominated options trading activity on the pharmaceuticals firm Monday with shares of the underlying stock up 1% to $30.18.
Similar(43)
The relevant constraint on choice functions is that "EU-dominated options" are not admissible choices, i.e., if an option has lower expected utility than another option according to all pairs of probability and utility functions, then the former dominated option is not an admissible choice.
Whether or not a dominated option is irrational depends on the status of the options that dominate it.
In the previous section, the moral we drew from Name Your Fortune\ is that a dominated option is only ruled irrational in virtue of being dominated if at least one of the options that dominate it is not itself dominated.
If your preferences were transitive, then you would not be vulnerable to choosing a dominated option and serving as a money pump.
If the dominated option A was chosen, respondents needed to confirm this preference or choose again.
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