The Kahneman-Tversky value function is
A)risk-averse in gains, risk-seeking in losses.
B)risk-seeking in gains, risk-averse in losses.
C)risk-averse in gains and losses.
D)risk-neutral in gains and losses.

Question

Quizplus · Accepted Answer

The Kahneman-Tversky value function, part of Prospect Theory, suggests that people are generally risk-averse when it comes to gains (preferring a certain gain over a gamble with higher or equal expected value) and risk-seeking in losses (preferring a gamble over a certain loss of equal or lower expected value).

The Kahneman-Tversky Value Function Is