According to the reflection effect,
A)people think harder about losses than about gains.
B)people become more risk preferring over time.
C)attitudes toward risk are reversed for gains versus losses.
D)subjective probabilities on riskier outcomes are weighted heavier than on less risky outcomes.

Question

Quizplus · Accepted Answer

The reflection effect states that people's attitudes toward risk are reversed for gains versus losses. Specifically, people are risk-averse for gains (i.e. they prefer a sure thing) and risk-seeking for losses (i.e. they prefer to take a chance). This effect was first observed by psychologists Daniel Kahneman and Amos Tversky in their research on prospect theory.

According to the Reflection Effect