According to prospect theory,when will people choose to take on risks?
A)never,as it is a rational choice model
B)when evaluating potential gains
C)when evaluating potential losses
D)when outcomes are framed in terms of probability

Question

Quizplus · Accepted Answer

According to prospect theory, people are more likely to take risks when they are evaluating potential losses, as they tend to be loss-averse and will take risks to avoid losses.

According to Prospect Theory,when Will People Choose to Take on Risks