2Bobs—with David C. Baker and Blair Enns cover image

The Emotional Journey of Buying and Selling

2Bobs—with David C. Baker and Blair Enns

CHAPTER

The Probability Effect and Expected Utility Theory

Expected utility theory works on populations or numerous instances. It doesn't actually work over populations, but when it's one person making one decision at one time, it's known as the certainty effect. People over weight outcomes that are considered certain relative to outcomes that are suspected of being probable.

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