Which of the following is a central tenet of prospect theory?
A)utility maximization
B)satisficing
C)cognitive dissonance
D)risk aversion

Question

Quizplus · Accepted Answer

Prospect theory, developed by Daniel Kahneman and Amos Tversky, suggests that people value gains and losses differently, leading to decisions that deviate from those predicted by classical utility theory. A central aspect of this theory is that people exhibit risk aversion when dealing with potential gains and risk-seeking behavior when facing potential losses.

Which of the Following Is a Central Tenet of Prospect