منابع مشابه
Prospect Theory
Prospect theory is a descriptive theory of how individuals choose among risky alternatives. The theory challenged the conventional wisdom that economic decision makers are rational expected utility maximizers. We present a number of empirical demonstrations that are inconsistent with the classical theory, expected utility, but can be explained by prospect theory. We then discuss the prospect th...
متن کاملProspect Theory
Prospect theory (Kahneman & Tversky, 1979) predictions were examined in light of ethnocentrism and intergroup conflict. An experiment conducted at the outset of the 2003 invasion of Iraq by the U.S., U. K. and their allies explored American and British participants’ preferences for certain versus uncertain gains and losses concerning Iraqi, American, and British lives. In four conditions, parti...
متن کاملSkill reputation, prospect theory, and regret theory
When a risky decision involves both skill and chance, success or failure provides information about the decision maker’s skill. Using standard models from the principal—agent literature, we show that a concern for skill reputation can help explain the central prediction of prospect theory that people tend to overweight small probabilities and underweight large probabilities. When the odds of su...
متن کاملSkill signaling , prospect theory , and regret theory ∗
When a risky decision involves both skill and chance, success or failure is a signal of the decision maker's skill. Adopting standard models from the career concerns literature, we show that a rational desire to avoid looking unskilled may help explain several anomalies associated with prospect theory, including probability weighting, loss aversion, and framing. Prospect theory's four-fold patt...
متن کاملProspect theory and liquidation decisions
We solve a liquidation problem for an agent with preferences consistent with the prospect theory of Kahneman and Tversky (1979). We find that the agent is willing to hold a risky project with a relatively inferior Sharpe ratio if the project is currently making losses, and intends to liquidate it when it breaks even. On the other hand, the agent may liquidate a project with a relatively superio...
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ژورنال
عنوان ژورنال: Journal of Environmental Economics and Management
سال: 2019
ISSN: 0095-0696
DOI: 10.1016/j.jeem.2019.06.005