The Prospect Theory Maintains That Consumers Frame Decision Alternatives in Terms

question 104

True/False

The prospect theory maintains that consumers frame decision alternatives in terms of gains and losses according to a value function.

---

Definitions:

Judgmental

Inclined to make judgments, especially moral or personal ones, about others often prematurely or without all the facts.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Fixed-Interval Reinforcement

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Respondent Behavior

A type of behavior that occurs as an automatic response to a certain stimulus, often associated with classical conditioning.