Which of the following is NOT among the statements that critics of prospect theory have made about it?
A) It is not necessary, since expected utility theory accounts rather well for most risky choices.
B) The evidence reflects systematic mistakes that consumers might correct through experience and awareness.
C) Instead of explaining behavioral puzzles, prospect theory merely summarizes them.
D) Loss aversion has been proven to be false in many theoretical and experimental economic works.

Question

Quizplus · Accepted Answer

Critics of prospect theory have made the statements A, B, and C, but loss aversion is a central aspect of prospect theory and has been supported by a large body of empirical evidence, including studies in economics, psychology, and neuroscience. Therefore, D is the statement that is NOT among the criticisms of prospect theory.

Which of the Following Is NOT Among the Statements That