Prospect Theory
In general, according to prospect theory, when the prospect of gains is emphasized, individuals ❌ risky behaviors, called risk averse. When the attempt to minimise losses is highlighted, individuals tend to ❌, called risk seeking.
People ❌ when they evaluate outcomes in terms of costs, or losses, ❌ when they evaluate outcomes in terms of gains.
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prefer risky behaviors
prefer risky behaviors
reject risky behaviors
reject risky behaviors
are willing to take risks
are willing to take risks
tend to avoid risks
tend to avoid risks
but tend to avoid risks
but tend to avoid risks
but are willing to take risks
but are willing to take risks