Alright, I'ma post some questions and I want people to answer both of them. Nothing special, just satiating my curiosity. I'll post the 'solution' in a few days.
1. Prospect theory
Kahneman and Tversky presented groups of subjects with a number of problems. One group of subjects was presented with this problem.
1. In addition to whatever you own, you have been given $1,000. You are now asked to choose between:
A. A sure gain of $500
B. A 50% change to gain $1,000 and a 50% chance to gain nothing.
Another group of subjects was presented with another problem.
2. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:
A. A sure loss of $500
B. A 50% chance to lose $1,000 and a 50% chance to lose nothing.
Mark
1. Prospect theory
Kahneman and Tversky presented groups of subjects with a number of problems. One group of subjects was presented with this problem.
1. In addition to whatever you own, you have been given $1,000. You are now asked to choose between:
A. A sure gain of $500
B. A 50% change to gain $1,000 and a 50% chance to gain nothing.
Another group of subjects was presented with another problem.
2. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:
A. A sure loss of $500
B. A 50% chance to lose $1,000 and a 50% chance to lose nothing.
Mark