pseudocertainty effect

It can also explain things, such as the pseudocertainty effect.

When making use of the pseudocertainty effect, how you frame a question determines the answer.

The pseudocertainty effect is a concept from prospect theory.

Kahneman and Tversky (1986) illustrated the pseudocertainty effect by the following examples.

The pseudocertainty effect is the observation that people may be risk-averse or risk-acceptant depending on the amounts involved and on whether the gamble relates to becoming better off or worse off.

Prospect theory shows that a loss is more significant than the equivalent gain and also that a sure gain (certainty effect and pseudocertainty effect) is favored over a probabilistic gain and that a probabilistic loss is preferred to a definite loss.