This is gamble 1: do you prefer a sure win of $5 or a 75% chance to win $8? This is gamble 2: in the first stage, you have an 80% chance to end the game with no prize and a 20% chance to move to the second stage. Before completing the first stage, you must select one of the following second-stage choices: do you prefer a sure win of $5 or a 75% chance to win $8? This is gamble 3: do you prefer a 20% chance to win $5 or a 15% chance to win $8? Because of framing, which two of the gambles do people tend to treat incorrectly as identical?
A) gamble 1 and 2
B) gamble 2 and 3
C) gamble 1 and 3

Question

Quizplus · Accepted Answer

Gamble 1 and Gamble 2 are treated incorrectly as identical due to framing. Both involve a choice between a sure win of $5 and a 75% chance to win $8, but Gamble 2 includes an additional stage that affects the perception of the decision.

This Is Gamble 1: Do You Prefer a Sure Win