The tendency to place a lot of emphasis on definite outcomes is called _____.
A)the certainty effect
B)temporal discounting
C)risk aversion
D)the status quo bias

Question

Quizplus · Accepted Answer

The certainty effect refers to the psychological phenomenon where people tend to overvalue outcomes that are certain compared to those that are merely probable, even when the expected value is equivalent. This can lead to a preference for sure gains or sure avoidance of losses over probabilistic outcomes, which might have a higher expected value.

The Tendency to Place a Lot of Emphasis on Definite