Prospect theory maintains that humans, given a choice, tend to place more weight on the risk of loss than the potential for gains.

However, prospect theory offers an important corrective to this natural response -- we exaggerate the cost of terrorist attacks on U.S. soil. Keep this in mind when reading Benjamin Friedman's ...

Prospect Theory is the name of the concept developed by Nobel-prize winning professor Daniel Kahneman and Amos Tversky, who were the “Godfathers of mo ...

An undead lesson in prospect theory So, an explanation for that quick zombie survey: The two questions were designed to test whether people have consistent attitudes about risk.

Prospect theory disagrees with these two assumptions (among others). Its followers have used a barrage of psychological tests—the new vogue in economics—to reach their conclusions.

The decline of Soviet Union–era glory, of energy dominance, and of land itself—these are all losses that, according to prospect theory, could explain Putin's actions of late.

This graphic illustrates how the influence of the most famous paper by Kahneman and his frequent collaborator, Amos Tversky, "Prospect Theory: An Analysis of Decision Under Risk," spread after its ...