Prospect theory (Kahneman & Tversky, 1979) is a descriptive theory that models real-life financial decisions people make when faced with uncertain outcomes. Some of the key insights it offers are that human beings are loss averse – we weight losses higher than equivalent gains. Losses and gains are also evaluated with respect to a reference point. Prospect Theory has been used to explain many interesting deviances from rational, normative behaviour. Why, however, are we avers