The marginal utility of losses diminishes in prospect theory
the verdict
SUPPORTED
the evidence backs this
confidence 75/100
Prospect theory posits that the value function is S-shaped, showing diminishing sensitivity (or marginal utility) for both gains and losses as their magnitude increases.
Evidence for · 4
A prospect-theoretic evolutionary game approach for disinformation governance in social-media ecosystems.
2026 · cited by 0
Paper 1 incorporates prospect theory's value function to account for diminishing sensitivity to losses and gains.
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More for · 3
Diminishing loss sensitivity during risky decision-making among male individuals with gambling disorder.
2026 · cited by 0
Paper 4 models risky decision-making using diminishing loss sensitivity within a cognitive framework.
Self vs. Other in Affective Forecasting: The Role of Psychological Distance and Decision from Experience.
2024 · cited by 0
Paper 6 confirms that utility functions for individuals align with prospect theory, exhibiting diminishing sensitivity.
Prospect Theory and Loss Aversion: A Cognitive Perspective on Economic Behavior
2026 · cited by 0
Paper 9 outlines prospect theory's core principles, including how individuals perceive losses relative to a reference point with diminishing sensitivity.