Jessica's workplace is collecting money for a lottery pool. Each employee can choose to contribute $50, with a 1 in 600,000 chance of winning $1 million. If Jessica chooses not to contribute to the lottery pool, she is probably experiencing: A)positive framing. B)the endowment effect. C)loss aversion. D)status quo bias.

Question

Quizplus · Accepted Answer

Jessica's choice not to contribute to the lottery pool likely stems from loss aversion, which is the tendency to prefer avoiding losses to acquiring equivalent gains. The fear of losing $50 outweighs the potential gain of winning a share of $1 million, despite the low cost of entry.

Jessica's Workplace Is Collecting Money for a Lottery Pool