Studies have shown that when people are asked to imagine a hypothetical illness, the amount of money they say they would be willing to pay to avoid getting the illness is ________ they would be willing to pay for a cure if they were already sick.
A)unrelated to the amount
B)the same as
C)more than
D)less than

Question

Quizplus · Accepted Answer

Loss aversion is the tendency to experience losses as more painful than the pleasures that result from gains of the same magnitude. In this setting, people might perceive the loss from becoming sick as more painful than the gain from obtaining a cure. Indeed, studies have shown that when people are asked to imagine a hypothetical illness, the amount of money they say they would be willing to pay to avoid getting the illness is more than they would be willing to pay for a cure if they were already sick.

Studies Have Shown That When People Are Asked to Imagine