Prospect theory argues that when people make decisions under conditions of certainty they are more motivated to avoid losses than they are to seek gains.

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Prospect theory argues that when people make decisions under conditions of uncertainty or risk, they are more motivated to avoid losses than they are to seek gains. When faced with a potential loss, people tend to be more risk-averse and when faced with potential gains, they tend to be more risk-seeking.

Prospect Theory Argues That When People Make Decisions Under Conditions