You can see this in several ways—either the client is being inconsistent, as he makes different decisions based on how the the choices are presented; or he is being cheated by the money manager who lies about the value of the trades in question; or the client simply has non-independent preferences, which the money manager is exploiting (strict weak money pump).
I’m not sure either of the explanations is better than the other in this set-up; you’d have to experiment with the situation, change some variables, and see what comes up.
You can see this in several ways—either the client is being inconsistent, as he makes different decisions based on how the the choices are presented; or he is being cheated by the money manager who lies about the value of the trades in question; or the client simply has non-independent preferences, which the money manager is exploiting (strict weak money pump).
I’m not sure either of the explanations is better than the other in this set-up; you’d have to experiment with the situation, change some variables, and see what comes up.