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 is experiencing loss aversion, where she is motivated more by potential losses than potential gains. By not contributing to the lottery pool, she avoids the loss of $50, even though there is a small chance of gaining $1 million.

Jessica's Workplace Is Collecting Money for a Lottery Pool