The prospect theory suggests that ____.
A)decision makers are influenced by the way a situation or problem is framed
B)decision makers have too much confidence in their own abilities
C)decision makers tend to make judgments based on an initial impression
D)decision makers can't abandon an idea that costs too much money
E)decision makers find the notion of an actual loss more painful than giving up the possibility of a gain

Question

Quizplus · Accepted Answer

Scholars have advanced what is known as the prospect theory,which suggests that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain.We see a variant of this in the tendency of investors to hold on to their losers,but cash in their winners.

The Prospect Theory Suggests That ____