|
|
 Originally Posted by rong
I wonder what proportion of people would take red if it was 100k and how that proportion would change if first of all it was 1mil but then they were told it was a typo and was supposed to say 100k.
Enter Penny with a name and a theory.
I'd say if it were 100k instead of 1 mil i.e. press red to win 100k, press green for a 50% chance at winning 10 mil, you'd definitely get a lot more people pressing green. The reason for this is that 100k, while a certainly large amount of money, losing it for a (strong) chance at winning 10 mil isn't so bad, given that many people make that amount of money in a year or two. So 100k is not necessarily a life-changing amount, while 1 mil almost certainly is for all but the richest among us.
Don't think there's a name for that but it's all under utility of money iirc
|
Reply With Quote