The idea that people are "risk adverse"-that is, they are more concerned with potential loss than gain is associated with
A)game theory.
B)prospect theory.
C)two-level game theory.
D)bureaucratic politics model.
E)None of the above is true.

Question

Quizplus · Accepted Answer

This idea is associated with prospect theory, which suggests that individuals are more likely to take risks to avoid losses rather than to achieve gains. Game theory and two-level game theory focus more on strategic interactions between individuals or groups. The bureaucratic politics model looks at decision-making within organizations.

The Idea That People Are "Risk Adverse"-That Is, They Are