The Kahneman-Tversky value function shows that a gain of $100
A)is valued less than two gains of $50.
B)would be offset in one's mind by a loss of less than $100.
C)would be offset in one's mind by a loss of more than $100.
D)would be offset by a gain of $100.

Question

Quizplus · Accepted Answer

The Kahneman-Tversky value function, part of Prospect Theory, suggests that people derive more satisfaction from multiple smaller gains than a single equivalent gain, due to the diminishing sensitivity to gains.

The Kahneman-Tversky Value Function Shows That a Gain of $100