> The [Prospect Theory] model is descriptive: it tries to model real-life choices, rather than optimal decisions, as normative models do.

Expected utility is normative.

Yep.

tl;dr - people over value loses, and undervalue gains.

If we have a coin toss game where head=5$ for me and tails=5$ for you, you will only play if the game is something like 70 / 30 in your favor.