Tag: theory

Civil Service, Health & Insurance, Public Institutions, Social Security

Quality of Life and Prospect Theory

July 12, 2016

Via: Healthcare Economist

Prospect theory states that individuals view transactions relative to a fixed reference point. ¬†Individuals are risk averse for gains (i.e., they would prefer $10 for sure over a 50/50 of winning $0 or $20) but risk loving over¬†losses (i.e., they […]