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Which Theory Hypothesizes That the Way in Which Information Is

question 78

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Which theory hypothesizes that the way in which information is framed differentially affects risk assessments and any associated consumer decisions?


Definitions:

Prospect Theory

A behavioral economic theory that describes how people make decisions under conditions of risk and uncertainty, prioritizing losses differently from gains.

Framing Effect

A cognitive bias where people decide on options based on whether they are presented in positive or negative terms.

Framing Effects

Cognitive biases where people react differently based on how choices or information are presented or "framed" to them.

Behavioral Economists

Behavioral economists study how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

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