What Is the Reflection Effect

Multiple Choice

What is the reflection effect?

A) The observation that individuals are risk averse over gains and risk-loving over losses.
B) The observation that individuals are risk loving over gains and risk-averse over losses.
C) The observation that risk preferences switch between risk-loving and risk aversion depending on whether the outcome is a gain or loss.
D) The observation that risk aversion observed over small gambles implies unreasonable levels of risk aversion over large gambles.