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Among the firms that make a profit, Amazon and LinkedIn are the most highly valued: both of them score highly on all four valuation measures.
This implies that the four valuation measures need to be different and satisfy certain inequalities.
Further research could be carried out by implementing the trade-off method according to the four valuation measures which are defined in the theory of reference-dependent preferences.
The four valuation tasks and the effects on the WTP studied are summarized in Table 1.
The ordering obtained by the direct ranking task was then compared with the orderings implied by individuals' responses to the four valuation techniques (PTO-UP, PTO-Down, PTO-WAD, SG).
In all three cases, the improvement E → C ranked better than F → B. A comparison between the direct ranking task and the rankings predicted by the four valuation techniques reveals considerable deviation in the predicted rankings on the individual level.
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