Question

In his work, David Moss describes how investors psychology favored limited liability after the early 19th century New York experiment. In fact, the comparison between investors psychologies in the context of unlimited liability and lottery tickets is:

1-Asymmetrical. Unlimited liability investors tend to overestimate the minimum probability of loss, whereas in lottery tickets, they overestimate the minimum probability of win.

2-There is no such comparison between lottery tickets and unlimited liability investors.

3-Symmetrical depending on the amount of money involved. For large amounts, both unlimited liability and lottery tickets investors tend to overestimate the minimum probability of loss.

4-Symmetrical. Unlimited liability and lottery tickets investors tend to overestimate the minimum probability of loss.