In prospect theory, _____ refers to the fact that people will forgo a superior choice (a potential benefit) to avoid a loss.
A) risk seeking
B) loss aversion
C) source dependence
D) escalation of commitment

Question

Quizplus · Accepted Answer

Loss aversion is the tendency for people to strongly prefer avoiding losses than acquiring gains. This can lead people to turn down superior choices because they want to avoid the possibility of a loss. The other options don't accurately describe this phenomenon in prospect theory.

In Prospect Theory, _____ Refers to the Fact That People