Plausibility theory seeks to provide us with a systematic way to resolve cognitive dissonance.
It accesses the range of possible outcomes like all the other theories but it focuses on the probability of hitting a threshold point or a highest point.
Such as the net loss faced if a particular amount of risk is taken.
It helps in explaining the taking of unknowable risks.
Example: -In general a profitable decision is rejected if there is a possibility of making loss by more than 2%.
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