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The theory intends to explain why people behave irrationally when making choices.
2. Framing effect. It refers to the difference in response to the same question represented in different ways. This technique is frequently used in marketing ads campaign, such as PAD.
3. Sunk-Cost effect. When people have put effort into something, they are often reluctant to pull out because of the loss that they will make, even if continued refusal to jump ship will lead to even more loss.
How you have, or will you use these lessons in your work life?
Prospect theory suggests "aggregate losses and segregate gains"...
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