The cost or payoff

The cost or payoff is not always clear.

For example, people feel more pain from the loss of a dollar than pleasure from a dollar gained. It is called loss aversion. 

The prospect theory combines the ideas of loss aversion and over- and under-weighing the odds. It helps to calculate the real expected value.

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Here's a Better Way to Deal With Life's Risks

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time.com
Here's a Better Way to Deal With Life's Risks

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