Author Question: In what way does prospect theory differ from the standard theory of expected utility? a. With ... (Read 124 times)

arivle123 · **on:** Jul 1, 2018

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.