S2 645 C Consider two prospects: Problem 1: Choose between Prospect A: $2,500 with probability .33, $2,400 with probability .66, Zero with probability .01. And Prospect B: $2,400 with certainty. Problem 2: Choose between Prospect C: $2,500 with probability .33, Zero with probability .67. And Prospect D: $2,400 with probability .34, Zero with probability .66. It has been shown by Daniel Kahneman and Amos Tversky (1979, Prospect theory: An analysis of decision under risk, Econometrica 47(2), 263-291) that more people choose B when presented with problem 1 and when presented with problem 2, most people choose C. These choices violate expected utility theory. Why