Prospect Theory is the name of the concept developed by Nobel-prize winning professor Daniel Kahneman and Amos Tversky, who were the “Godfathers of modern decision science.” It describes the hidden ...

Prospect theory [1, 2, 3] has perhaps been one of the most influential theories within psychology and behavioral economics. Daniel Kahneman won the Nobel prize for this work. Prospect theory and ...

Prospect theory, a theory of behavioral economics, is actually unrelated to both our beloved and non-beloved prospects. Rather, prospect theory describes how we choose between probabilistic ...

Prospect Theory is a behavioral economic theory developed by Daniel Kahneman and Amos Tversky in the 1970s. It is explained in the Chartered Market Technicians curriculum for level 2. The theory aims ...

Prospect theory has emerged as a pivotal framework in understanding travel choice behaviour under uncertainty, offering a nuanced perspective that diverges from traditional expected utility theory.

One of the stylized facts underlying prospect theory is a fourfold pattern of risk preferences. People have been shown to be risk seeking for small probability gains and large probability losses, ...

Earlier this month, NPR’s Shankar Vedantam floated the idea that something called "prospect theory" could explain Russian President Vladimir Putin’s invasion of Crimea. A behavioral economic model ...

FREE TRADE AND PROSPECT THEORY….Matt Yglesias (here and here) wants some concrete ideas about how to rebuild support for free trade. For some reason, his post reminded me of a basic problem that ...