According to the Kahneman-Tversky value function,
A)Small gains should be combined with large losses
B)Small gains should be combined with large gains
C)Small losses should be segregated from large losses
D)Small gains should be segregated from large losses

Question

Quizplus · Accepted Answer

According to the Kahneman-Tversky value function, small gains should be segregated from large losses. This means that people are more sensitive to losses than gains, so it is better to minimize the impact of losses by separating them from gains. This can be useful in investment decision making, where losses can be more emotionally impactful than gains.

According to the Kahneman-Tversky Value Function