Answered>Order 8313
Michael, is a prospect theory maximizer. Michael can choose between two risky prospects, ˜p and ˜q. Each of them is expressed here in terms of the changes with respect to Michael’s reference point: p˜ = (0.1, ?4; 0.5, ?1; 0.3, +1; 0.1, +9) q˜ = (0.5, ?2; 0.5, +3) Michael’s underlying value function over changes […]