Another reason people are often reluctant to gamble is that people don’t tend to make decisions to maximise utility. Instead, people’s evaluation of risk is generally more along the lines of Prospect theory, which makes a “fair” gamble seem unattractive because losses are felt more than gains.
Another reason people are often reluctant to gamble is that people don’t tend to make decisions to maximise utility. Instead, people’s evaluation of risk is generally more along the lines of Prospect theory, which makes a “fair” gamble seem unattractive because losses are felt more than gains.