Engelhardt & Fischer theory

Engelhardt and Fischer's theory focuses on how people make choices under risk, emphasizing that individuals evaluate potential outcomes based on their desirability and likelihood. The theory suggests that decision-making involves integrating the value of different options and their probabilities to select the most preferred choice. It highlights that people’s preferences influence their risk-taking behavior, balancing the potential benefits against possible losses. Essentially, it models how individuals systematically process information about risks and rewards to make rational decisions, considering their personal preferences and attitudes towards uncertainty.