Prospect Theory

Who are the researchers associated with the popularization of Prospect Theory?

• Smith and Johnson

• Brown and Taylor

• Miller and Davis

• Kahneman and Tversky

What do individuals tend to value more according to Prospect Theory?

• Potential losses

• Emotional responses

• Gains in a particular choice

• Equal probability occurrences

In scenarios with equal probabilities, what do people prefer according to Prospect Theory?

• Balancing gains and losses

• Avoiding decisions

• Maximizing gains

• Minimizing losses

Why do losses tend to affect decision-making more than gains?

• They invoke emotional responses

• They are easier to calculate

• They are more frequent

• They are less predictable

Even if minimizing losses and maximizing gains have the same value, what do people prefer?

• Minimizing losses

• Maximizing gains

• Avoiding decisions

• Balancing both