a great deal of attention has been recently paid to ideas like prospect theory and loss aversion(Kahneman and Tversky) Point #f 1 of these studies-people are very sensitive to framing and current position Rabin-people are risk averse over small bets-this is actually incompatible with standard measured levels of risk aversion Point #2 people are concave in the win domain(classically riskaverse), but convex in the loss domainA great deal of attention has been recently paid to ideas like prospect theory and loss aversion (Kahneman and Tversky). Point # 1 of these studies– people are very sensitive to framing and current position. Rabin – people are risk averse over small bets– this is actually incompatible with standard measured levels of risk aversion. Point # 2: people are concave in the win domain (classically riskaverse), but convex in the loss domain