People overweight small probabilities and underweight moderate and high ones

Evidence

2. Low probabilities are overweighted, giving rise to some risk seeking in the domain of gains. For example, many people prefer one chance in a thousand to win 3,000 over 3 for sure. … 3. Although for low probabilities, π(p)>p, in general, π(p)+π(1−p)<1. Thus low probabilities are overweighted, moderate and high probabilities are underweighted, and the latter effect is more pronounced than the former. — John T. Jost and Jim Sidanius, Political Psychology, 2493

Categorization

• DEFINE: Spells out the core weighting distortions of prospect theory — the subadditivity axiom π(p)+π(1−p)<1 in plain language.