Prospect theory is a theory of behavioral economics, judgment and decision making that was developed by Daniel Kahneman and Amos Tversky in 1979. The...

In behavioral economics, cumulative prospect theory (CPT) is a model for descriptive decisions under risk and uncertainty which was introduced by Amos...

human errors that arise from heuristics and biases, and developed prospect theory. In 2011, Kahneman was named by Foreign Policy magazine in its list...

traced the cause of the disposition effect to the so-called "prospect theory". The prospect theory proposes that when an individual is presented with two equal...

necessarily comes at the expense of another. The following relate to prospect theory: Ambiguity effect, the tendency to avoid options for which the probability...

discrepancies is called Prospect Theory. The 'doubly-divergent' critique of Rational Choice Theory implicit in Prospect Theory has sometimes been presented...

process theories can be found in social, personality, cognitive, and clinical psychology. It has also been linked with economics via prospect theory and behavioral...

prediction and probability judgment; later they worked together to develop prospect theory, which aims to explain irrational human economic choices and is considered...

theories to explain these deficiencies for many years. These include prospect theory, rank-dependent expected utility and cumulative prospect theory,...

revised account of prospect theory that they called cumulative prospect theory. The new theory eliminated the editing phase in prospect theory and focused just...

to the problem observed by Rabin is that proposed by prospect theory and cumulative prospect theory, where outcomes are considered relative to a reference...

Economics writer Chris Dillow has argued that, among other factors, prospect theory may explain the willingness of many voters to take a path that he sees...

motivation to pursue a goal can be explained using the principles of Prospect theory – specifically, those associated with the S-shaped value function....

aspects of multiple major theories, including expectancy theory, hyperbolic discounting, need theory and cumulative prospect theory. According to Schmidt...

When defined in terms of the pseudo-utility function as in cumulative prospect theory (CPT), the left-hand of the function increases much more steeply than...

optimization (KTO) is another direct alignment algorithm drawing from prospect theory to model uncertainty in human decisions that may not maximize the expected...

underweight large ones. Daniel Kahneman and Amos Tversky proposed prospect theory to encompass these observations and offer an alternative model. There...

risky prospect must lie somewhere between the value of that prospect’s best and worst possible realizations) which is central to prospect theory, expected...

people tend to interpret a situation more positively than it is Prospect theory – Theory of behavioral economics Automatic vigilance hypothesis Leniency...

development of prospect theory, which modified expected utility theory by accounting for psychological factors. Normative decision theory is concerned with...

his career: his early work concerning cognitive biases, his work on prospect theory and happiness, and with the Israel Defense Forces. Jason Zweig, a columnist...

saved, patients treated or not treated, monetary gains or losses. Prospect theory posits that a loss is more significant than the equivalent gain, that...

"Escalating Commitment in Individual and Group Decision Making: A Prospect Theory Approach". Organizational Behavior and Human Decision Processes. 54...

object when they do not own it. The endowment theory can be defined as "an application of prospect theory positing that loss aversion associated with ownership...

probability events introduced in cumulative prospect theory may restore the St. Petersburg paradox. Cumulative prospect theory avoids the St. Petersburg paradox...

majority choice better than (a) cumulative prospect theory, (b) two other modifications of expected utility theory, and (c) ten well-known heuristics (such...

probabilities. Widely accepted risk-aversion theories, including Expected Utility Theory (EUT) and Prospect Theory (PT), arrive at risk aversion only indirectly...

needed] Prospect theory helps to describe the natural reactions and processes involved in making a decision in a risk-taking situation. Prospect theory makes...

that this person is "risk-averse". It is important to note that for prospect theory value functions, risk-seeking behaviour can be observed in the negative...

Mental accounting incorporates the economic concepts of prospect theory and transactional utility theory to evaluate how people create distinctions between...