An example of                              is that a person…

An example of                              is that a person may reject an investment when it is posed in terms of risk surrounding potential gains but may accept the same investment if it is posed in terms of risk surrounding potential losses.

Kahneman and Tversky posited that prospect theory is based u…

Kahneman and Tversky posited that prospect theory is based upon the notion that choices among risky opportunities are inconsistent with the basic tenets of utility theory. They found that people underweight outcomes that are probable in comparison with outcomes that are obtained with certainty. This is known as                                                         .