From the perspective of Rational Choice Theory, how do the two situations differ?
According to Rational Choice Theory, there is no difference between the two situations because your 20% risk of contracting a disease is reduced to 10% in each case. b) Does the Prospect Theory of value help explain the different responses to these situations? Explain. PT values will not help, because there are no values to consider in these situations. c) Does the Prospect Theory of weights help explain the different responses? Explain. PT weights will also not help, because the probabilities are the same in each case. d) This illustrates the phenomenon of “pseudocertainty”. Briefly explain. In Situation 2, it appears that the risk of contracting a disease is eliminated although in fact you will still have a 10% chance of contracting a disease with the vaccine. See Plous, pp. 100-101 for further discussion of this problem.
