Two scenarios are written in which the probability of loss and gain is the same.Scenario A is written so that the gain is emphasized,and Scenario B is written so that the loss is emphasized.People will almost always choose Scenario A. This outcome is predicted by one component of:
A) prospect theory
B) framing theory
C) normative models
D) descriptive models

Question

Quizplus · Accepted Answer

Prospect theory explains how people make decisions based on potential gains and losses, emphasizing that people are more likely to choose options framed as gains rather than losses, even if the probabilities are the same.

Two Scenarios Are Written in Which the Probability of Loss