Uncertainty and Framing - Deepstash

Uncertainty and Framing

The prospect theory shows that people are often willing to make riskier decisions to avoid losses than to make gains - even when the situation is identical but framed differently. For example, a 30% chance of death and a 70% chance of life are two different ways to describe the same thing.

If uncertainty is the default, an irrationally strong influence will be exerted on the outcome.

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ang_n

"An investment in knowledge always pays the best interest." - Benjamin Franklin

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