Question

_____ is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value.

Answer 1

The correct answer is Prospect theory effect

Prospect Theory (also called Perspective Theory) is a concept of cognitive psychology that is related to decision making in economic and financial contexts.

According to this theory, people, in general, tend to make choices based on potential losses rather than gains. In other words, the basis of the Prospectus Theory is the tendency that we all have to harbor a certain risk aversion.