How would you characterize a consumer who is risk loving?
A)A consumer who may accept a risky prospect even if the expected gain is negative.
B)A consumer who demands a positive expected gain as compensation for taking risk.
C)A consumer who completely ignores risk and makes his/her decisions solely on the basis of expected values.
D)None of the above.

Question

Quizplus · Accepted Answer

A consumer who is risk loving is characterized by their willingness to accept a risky prospect even if the expected gain is negative. This is because they derive satisfaction from taking risks and seek positive outcomes, even if they are not guaranteed.

How Would You Characterize a Consumer Who Is Risk Loving