In what way does prospect theory differ from the standard theory ...

[arivle123]

In what way does prospect theory differ from the standard theory of expected utility?
 a. With prospect theory, preferences depend only on final wealth levels.
  b. With prospect theory, preferences vary with initial (reference) wealth levels.
  c. With prospect theory, individuals are risk loving over small losses.
  d. With prospect theory, risk aversion does not play a role.

Question 2

Which is not a factor that makes cognitive mistakes more likely?
 a. uncertainty.
  b. time pressure.
  c. repetition.
  d. large number of choices.

[bob]

Answer to Question 1

b

Answer to Question 2

c

[arivle123]

Gracias!

[mammy1697]

Thanks for the timely response, appreciate it