# Prospect Theory

The effect where people think different under lose and gain.

- Risk Averse in Gain.

For High probability, the person will averse risk in gain. For example, if there option A of 90% chance of winning $10,000 and option B of 100% chance of winning $900. The person will take the option B.

2. Risk Loving in Lose.

For High probability, the person likes to take risk under lose. For example, if there are option A 90% of losing $10,000 and option B 100% chance of losing $900. The person will choose option A.

— Source: Wiki.