The idea that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain is called
A)a heuristic.
B)an availability bias.
C)a representativeness bias.
D)the prospect theory.
E)satisficing.

Question

Quizplus · Accepted Answer

Scholars have advanced what is known as the prospect theory, which suggests that decision makers find the notion of an actual loss more painful than giving up the possibility of a gain.We see a variant of this in the tendency of investors to hold on to their losers but cash in their winners.

The Idea That Decision Makers Find the Notion of an Actual