The tendency for people to dislike losing a particular amount more than they like gaining the same amount is called:
A)implicit favorite.
B)bounded rationality.
C)intuition.
D)nonprogrammed decision making.
E)prospect theory.

Question

Quizplus · Accepted Answer

The tendency described is a key aspect of prospect theory, which suggests that individuals weigh potential gains and losses asymmetrically. Specifically, the theory argues that people experience more pain from losses than pleasure from equivalent gains, resulting in risk aversion when faced with potential losses and risk seeking behavior when faced with potential gains.

The Tendency for People to Dislike Losing a Particular Amount