Can someone explain why Friedman-Savage utility function and Prospect theory seem to contradict each other? Pg 18, Vol 2, Prospect Theory says concave for gains (implying risk aversion), convex for losses (risk-seeking) and Q3 on the 2013 exam says the opposite according to Friedman-Savage...risk seeking (convex) for gains and risk-averse (concave) for losses. Is it semantics and one is taking about avoiding gains or losses? I'm confused! Thank you, thank you!
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