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That research, called prospect theory, looked at how people make choices when risk is involved.
You and Amos Tversky are perhaps best known for prospect theory.
Kahneman's research with Amos Tversky on decision making under uncertainty resulted in the formulation of a new branch of economics, prospect theory, which was the subject of their seminal article "Prospect Theory: An Analysis of Decisions Under Risk" (1979).
Studies have supported "prospect theory", the idea that people fear losing what they have more than they desire gains.
According to Kahneman's "prospect theory," most of us find losses roughly twice as painful as we find gains pleasurable.
Ervolini: This is prospect theory.
Prospect theory is the subject of this chapter.
Allowing for different latent decision making theories, i.e. Cumulative Prospect Theory and Expected Utility Theory, we find that the vast majority are Cumulative Prospect Theory types.
However, prospect theory is not plausible as a normative theory for rational behaviour under risk.
The research uses prospect theory to analyze how these factors influence their expectation on housing.
This study applies prospect theory to the selection of money back guarantee (MBG) contracts.
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