  I study the optimal pricing process for selling a unit good to a buyer with
prospect theory preferences. In the presence of probability weighting, the
buyer is dynamically inconsistent and can be either sophisticated or naive
about her own inconsistency. If the buyer is naive, the uniquely optimal
mechanism is to sell a ``loot box'' that delivers the good with some constant
probability in each period. In contrast, if the buyer is sophisticated, the
uniquely optimal mechanism introduces worst-case insurance: after successive
failures in obtaining the good from all previous loot boxes, the buyer can
purchase the good at full price.
