Which of the following presents problem for prospect theory?
A) Non-dichotomous decisions
B) The reflection effect.
C) Misperception of probabilities.
D) Reference points.

Question

Quizplus · Accepted Answer

Prospect theory primarily deals with decisions under risk and uncertainty, often focusing on dichotomous choices. Non-dichotomous decisions, which involve more than two options, can complicate the application of prospect theory as it is traditionally framed.

Which of the Following Presents Problem for Prospect Theory