Prospect Theory and Decision-Making Phenomena

Kazuhisa Takemura
Additional contact information
Kazuhisa Takemura: Waseda University

Chapter Chapter 8 in Behavioral Decision Theory, 2014, pp 89-100 from Springer

Abstract: Abstract Prospect theory, proposed by Kahneman and Tversky (1979) (Tversky and Kahneman 1992), is a theory that combines the knowledge of behavioral decision theory and nonlinear utility theory (or generalized expected utility theory). This chapter first reports the forecasts derived from the basic assumptions of prospect theory and empirical examples of such forecasts. It subsequently provides an overview of a new version of cumulative prospect theory that explains decision-making not only under risk but also under uncertainty and in light of experimental research into this theory.

Keywords: Condition Group; Test Subject; Utility Theory; Prospect Theory; Loss Aversion (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-4-431-54580-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9784431545804

DOI: 10.1007/978-4-431-54580-4_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().