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Prospect theory still holds External link icon.

Comments by me and a link to the external article (above).

Gordon Ansell News, Society, Science, Citation

If you had the following two choices:

  1. definitely gaining £3,000, or
  2. an 80% chance of gaining £4,000.

You'd choose option 1 and take the certain £3,000.

However, if you had a choice between:

  1. definitely losing £3,000, or
  2. an 80% chance of losing £4,000.

You'd do the opposite and take the 80% chance of losing £4,000.

Or at least that's what most people would do according to research.

This apparently demonstrates how we view losses in a different way to gains. It's all part of something called Prospect Theory and it won someone the Nobel Prize for a paper they published in 1979. Recent research shows it's still true.