Take the Good With the Bad

One of the most enduring theories of choice-making is the behavioral economics model called "Prospect Theory." People tend to avoid risk twice as much as work for reward. Unless you were raised somewhere other than Western culture. How does this apply to things beyond decision making? We'll replace one of your Psych 101 classes with this theory you should know.

Recommendations

• Abraham: Black Mirror (season 6; https://www.imdb.com/title/tt2085059/episodes/?mode=desktop&ref_=m_ft_dsk)
• Shane: The Martian (Book AND Movie; https://www.20thcenturystudios.com/movies/the-martian)

Links:

1. https://youtu.be/sM91d5I36Po
2. https://time.com/6145596/2022-winter-olympics-bronze-silver-medals-happiness/
3. Medvec, V. H., Madey, S. F., & Gilovich, T. (1995). When less is more: counterfactual thinking and satisfaction among Olympic medalists. Journal of personality and social psychology, 69(4), 603–610. https://doi.org/10.1037//0022-3514.69.4.603
4. https://www.nber.org/system/files/working_papers/w18621/w18621.pdf
5. http://psych.fullerton.edu/mbirnbaum/psych466/articles/Tversky_Kahneman_JRU_92.pdf
6. https://onlinelibrary.wiley.com/doi/10.1002/cb.1779#:~:text=A%20major%20limitation%20of%20prospect,to%20adopt%20a%20single%20prospect.
7. https://corporatefinanceinstitute.com/resources/capital-markets/prospect-theory/
8. https://www.sciencedirect.com/science/article/abs/pii/S014829631000189X

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