Prospect theory suggests that plaintiffs may be more willing

Prospect theory suggests that plaintiffs may be more willing to settle than defendants because the former are expecting to receive money and the latter are expecting to pay money.

True or False?

Solution

Prospect theory deals with situations where outcomes are uncertain. People tends to move towards the perceived gain. They are influenced by the perceived gains rather than losses.

Hence, here Plaintiffs may be more willing to settle than defendants because former are expecting to receive money.

Thus, This is True statement.