Which of the following is a perspective that highlights the importance of uncertainty and risk to the decision-making process?
A) rational decision-making model
B) bounded rationality
C) prospect theory
D) satisficing

Question

Quizplus · Accepted Answer

Prospect theory, developed by Daniel Kahneman and Amos Tversky, highlights the role of uncertainty and risk in decision making. It suggests that people tend to make decisions based on potential losses or gains, rather than on an objective evaluation of expected utility. This perspective recognizes that people are not always rational decision makers and can be influenced by their emotions, biases, and past experiences.

Which of the Following Is a Perspective That Highlights the Importance