The human behavioral principle that suggests, correctly, that most people hate/fear losing more than they love/crave winning is best-summarized by:_________

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22-07-2022
Social Studies

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The human behavioral principle that suggests, correctly, that most people hate/fear losing more than they love/crave winning is best-summarized by:_________

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MubeenaD MubeenaD · Answer 1 · 2022-07-28T09:55:10+02:00

The human behavioral principle that suggests, correctly, that most people hate/fear losing more than they love/crave winning is best-summarized by Prospect Theory.

According to the prospect hypothesis, people evaluate gains and losses differently, therefore they base their decisions on apparent rewards rather than losses.

The general idea behind this theory, also referred to as the "loss-aversion" theory, is that if two options are presented to a person that are equal in every way, but one is presented with potential gains and the other with potential losses, they will choose the option that is presented with potential gains.

The behavioral economic subfield of prospect theory describes how people choose between probabilistic alternatives when there is risk involved and it is unknown what the likelihood of various outcomes will be.

To learn more about Prospect Theory here

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