by Fnord666 on (#53MR5)
[20200519_114228 UTC: Updated to remove possible loss as my perceived implication of the original question.--martyb]martyb writes:If you were given $1,000 to play a game, would you accept a 50 percent chance to double your money or a 100 percent guarantee of gaining an additional $500?Implied in the question was that a 50% chance to double the $1,000 was also a 50% chance to lose all of the $1,000. Put that way, I'd take the 100% guarantee of gaining $500 more. Hmm. But why did I make that choice? What if I started with just $10? Or even $1? Would I choose differently? What if I started with $100,000 or even $1,000,000? Then what would my choice be — and why?That opening question was one of 17 hypotheticals posed when attempting to replicate 1979 foundational research on loss aversion and prospect theory.Global Study Confirms Influential Theory Behind Loss Aversion: