The vast majority of people - particularly women - answer a survey saying they'd take the certainty over chance.
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Scooped by
Graham Watson
onto Microeconomics: IB Economics July 27, 3:14 AM
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Nice to see the BBC having their stories dictated by social media - however, the example given is a brilliant example of behavioural economics in action. demonstrating the principle of loss aversion, with people feeling losses more acutely than gains.
Rational economic theory would suggest that a 50:50 chance of winning £1m means an expected return of £500,000, and that the rational consumer should choose that but the YouGov survey indicates that this isn't the case and there's also an interesting - and entirely predictable gender split in how people choose.