According to prospect theory, people are typically much more sensitive to potential ______ than to potential ______.

Question

Quizplus · Accepted Answer

Prospect theory suggests that people are more sensitive to potential losses than potential gains, meaning that they may be more willing to take risks to avoid losses than to pursue gains. This is known as loss aversion, and it can impact decision-making in a variety of contexts, from investing to gambling to healthcare choices.

According to Prospect Theory, People Are Typically Much More Sensitive