Question: Consider a person with the following value function under prospect theory: v(w) = w 1/2 if w 0 v(w) = -6(-w) 1/2 if w <

Consider a person with the following value function under prospect theory:

v(w) = w1/2 if w 0

v(w) = -6(-w)1/2 if w < 0

where w = wealth. Is this individual loss averse?

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