Question: Prospect theory vs. expected utility . Describe the main differences between prospect theory and expected utility theory. Illustrate your answer with graphs, and give at
Prospect theory vs. expected utility. Describe the main differences between prospect theory and expected utility theory. Illustrate your answer with graphs, and give at least two examples of choices where the theories make different predictions.
One of the example was this,
the reversal of preferences when payoff values are multiplied by -1, etc.
Please explain the difference etc an the above example I wrote, thanks
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