In behavioral economics,________ suggests that people place more value on avoiding losses than attempting to realize gains.
A) prospect theory
B) gain aversion
C) the ambiguity effect
D) the availability heuristic
E) the bandwagon effect

Question

Quizplus · Accepted Answer

The concept of prospect theory suggests that individuals are more affected by the possibility of loss than the potential for gain. This means that individuals are more likely to take risks to avoid losses rather than to gain something. Therefore, option A is the correct answer.

In Behavioral Economics,________ Suggests That People Place More Value on Avoiding