Tend to choose the program A

However, loss and access is not absolute. When people get in the face of risk aversion, and preference in the face of loss, when the risk of loss and get another point, relative to the reference, and change things when people used in the evaluation of the view can change people is attitude towards risk. .example, a company faced with two investment christian louboutin sale decisions, investment program A positive gains for 200 million investment program in a 50% chance B profit 3,000,000, 50% chance of profit 1 million. At this time, if the company is profit target is set relatively low, for example, is 100 million, then the program looks like an extra profit of A 1 million, while B is just to achieve either goal, or more than 2 million profit. A and B look up are available, most employees do not want to risk this time, tend to choose the program A;

Their health have increased the probability of death for people who find it difficult to accept the loss

In the experiment, many people will louboutin sale say a few are willing to hundred dollars to buy medicine, but pharmaceutical companies spend tens of thousands of dollars even if they do louboutin sale not want to participate in experimental drug trial. This fact is loss aversion psychology. disease cured after the disease is a relatively sensitive and will, their health have increased the probability of death for people who find it difficult to accept the loss, it is clear that people requested compensation for the loss is much higher than they are willing to pay as much as treatment.

Suppose you got a disease

This is Kahneman, theory to be happy. Let us look at a Sall raised question: Suppose you got a disease, the possibility of a millionth (car accident death rate lower than the U.S. average) will be sudden death, there is a drug After eating the possibility of death can be louboutin sale reduced to zero, then how much money you are willing to buy these medicines? So now what you think of, assuming you are very healthy, if pharmaceutical companies are now looking for some test They developed a kind of new drugs, after taking this drug will make louboutin you have a slim possibility of sudden death, then you ask how much money pharmaceutical companies to compensate you?

A is the loss of 1

most people christian louboutin choose A This shows that people are risk aversion. .Second, this two choices, A is the loss of 1,000 christian louboutin yuan you sure, B is a 50% probability cost you 2000 dollars, 50% chance you lost nothing. results Most people choose B, which shows that they are risk appetite. .However, careful analysis of the two questions above, you will find that they are all the same. assuming you win the first of 2,000 yuan, 1,000 yuan so sure to win , that is from winning the 2000 loss of 1,000 RMB yuan in the affirmative; 50% of the winning 2000 dollars is a 50% chance of no loss of money; 50% can not get anything on the possibility of loss is equivalent to 50% in 2000 element. .It is not difficult to conclude: people in the face was often cautious, unwilling to take risks; in the face of losses, all have become adventurers had.