This podcast script introduces Prospect Theory, a behavioural economics model explaining how people make decisions under uncertainty. It highlights two core components: a value function showing that losses loom larger than gains (loss aversion), and a probability weighting function illustrating how people distort probabilities, overestimating small chances and underestimating large ones. The script uses relatable examples like lottery tickets, investing, and marketing strategies to demonstrate how these biases influence choices, ultimately advocating for greater self-awareness to improve decision-making. The podcast aims to make this complex psychological theory accessible and applicable to everyday life.

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