When you choose to decline, rather than accept a gamble with a 50/50 chance of winning or losing a dollar, this choice reflects the effect of:
A) loss aversion
B) gain aversion
C) attribute substitution
D) framing.

Question

Quizplus · Accepted Answer

Loss aversion refers to the psychological phenomenon where the pain of losing is psychologically about twice as powerful as the pleasure of gaining. In this scenario, the individual's decision to decline a gamble with a 50/50 chance of winning or losing a dollar is driven by the desire to avoid the potential loss, which is perceived as more significant than the potential gain.

When You Choose to Decline, Rather Than Accept a Gamble