L311: Prospect theory

System 1 is automatic and impatient

• True

• False

• God knows

System 2 gives attention to the mental activities

• Can I ask teacher?

• True

• False

In the invisible Gorilla experiment, people could not see Gorilla because

• They were too busy counting

• they had fallen asleep watching video

• There was no Gorilla

• None of the above

our sensitivity to things becomes smaller and smaller

• True

• False

For us humans, losing something hurts more than gaining it. This happens because we don’t like to lose

This is called

• Loss Aversion

• Diminishing Sensitivity

• Reference Point

• Gain Aversion

• No clue

Diminishing Sensitivity means

• if I am eating a dessert, the first spoon will give the higher amount of satisfaction than subsequent spoons of it

• its some kind of tooth sensitivity

• This means that our sensitivity to things becomes smaller and smaller.