Which of the following is an important influence on decision making, according to prospect theory?
A) Reference point
B) Decision framing
C) Subjective value
D) All of the above

Question

Quizplus · Accepted Answer

Prospect theory suggests that all three factors - reference point, decision framing, and subjective value - have an important influence on decision making. The reference point refers to the starting point of a decision-maker's experience. Decision framing refers to the way in which a decision is presented, which can affect how people perceive the outcomes of their decisions. Finally, subjective value refers to the perceived value of a particular choice, which can be affected by factors such as risk and uncertainty. In combination, these factors help explain how people make decisions in a variety of contexts.

Which of the Following Is an Important Influence on Decision