Question

请教神经经济学高手,帮忙用英语举例,在线等,谢谢

For instance, a specific model explains the existence of trust by means of three variables.
(1) P, the likehood [PROBABILITY] of making a profit (a gain). This equals the probability that the recipient of trust actually behaves in a trustworthy manner.
(2) L (for losses), the potential loss that occurs if trust is betrayed and
(3) G (gain),the potential gain if the recipient of trust in fact proves to be trustworthy [18].

上面是介绍
下面是题目P*G是大于或小于或等于(1-P)*L,用英语举例，谢谢

Answer 1

The normative hypothesis of this model is that an actor will always be trusted if the following assumption applies: p × G >(1 -- p) × L

p*G = your probable gain when your trust is trustworthy.
(1-p)*L = your probable losses when your trust is betrayed
only when your expected gain is more than your probable losses, will your trust someone (or something)...

for example
now,you are thinking about buying a stock
it may have 2 results:
1, you will gain $1000, the probability is 0.4
2, you may lose $500, the probability is 0.6
1000*0.4>500*0.6
so according to the trsut model, you will buy the stock anyway.
(in this example, you trust the stock and the stock is trusted by you.)