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Michael Pokrovski

toegevoegd een audio Decision Making and Problem Solving
2026-06-08 20:30:31 -

What is prospect theory?
What Is Prospect Theory? The Moment Where Economic Theory Meets Human Behavior A person is offered two choices: A guaranteed gain of $500 A 50% chance to gain $1,000, and a 50% chance to gain nothing Most people choose the guaranteed $500. Now reverse the framing: A guaranteed loss of $500 A 50% chance to lose $1,000, and a 50% chance to lose nothing Now most...

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Michael Pokrovski

toegevoegd een audio Decision Making and Problem Solving
2026-06-08 20:45:33 -

Why do people fear losses more than gains?
Why Do People Fear Losses More Than Gains? The Asymmetry That Shows Up Everywhere A person is offered a choice: Receive $100 for sure Or flip a coin: win $200 or win nothing Most people hesitate, then choose the sure $100. Now reverse the structure: Lose $100 for sure Or flip a coin: lose $200 or lose nothing Now many people take the gamble. Nothing in the...

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