Rational economic theory predicts that people should be indifferent between receiving $20 with certainty and receiving $25 with an 80 percent probability, because the net value of both options is the same.

Authors

• Person: Paul Conner Organization: Quirk's
  Behavioral economics: what it is and three ways marketers can use it

Sources

• Behavioral economics: what it is and three ways marketers can use it www.quirks.com Paul Conner · Quirk's via serper

Referenced by nodes (1)

• rational economic theory concept