In decision-making situations that involve financial rewards,researchers have found that the value people put on money is not linear with the face value of the money.This is referred to as:
A) biased estimation.
B) subjective utility.
C) incongruous valuation.
D) erroneous calibration.

Question

Quizplus · Accepted Answer

Subjective utility refers to the fact that people do not value money or rewards in a purely rational or linear manner. Rather, the subjective experience of receiving a certain amount of money or reward is influenced by various factors such as personal preferences, past experiences, and the context in which the money or reward is received. This means that people may value small amounts of money more than larger amounts, or they may place a higher value on a reward that is earned through effort or achievement, even if it is not as objectively valuable as another reward. This concept is important in decision-making situations where financial rewards are at stake, as it suggests that people's choices may not always be based purely on rational calculations of value.

In Decision-Making Situations That Involve Financial Rewards,researchers Have Found That