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

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 ...

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.

¹ “Prospect Theory: An Analysis of Decision Under Risk,” Daniel Kahneman and Amos Tversky, Econometrica, 47(2): 263-291. March 1979. ² Ibid.

A new global study offers a powerful confirmation of one of the most influential frameworks in all of behavioral sciences and behavioral economics: prospect theory, which when introduced in 1979 ...

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 ...