Decision Tree Under Uncertainty

This simulation puts two decision-makers in front of the same decision tree — a certain payoff, a coin-flip gamble, and a longshot bet, all worth the same on paper. One picks by maximizing expected utility over the true probabilities; the other picks by prospect theory, distorting probabilities and weighing losses more heavily than gains. Flip between gain and loss framing, dial in risk aversion, loss aversion and probability distortion, and watch the two agents' choices — and their running earnings — pull apart exactly the way behavioral economics predicts real decision-makers do.