Choices, Values, and FramesDaniel Kahneman, Amos Tversky Cambridge University Press, 2000 M09 25 - 848 pages This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making. |
Contents
Cumulative Representation of Uncertainty | |
Compound Invariant Weighting Functions in Prospect Theory | |
Dražen Prelec 5 Weighing Risk andUncertainty | |
PART THREE LOSS AVERSION ANDTHEVALUE FUNCTION 7 LossAversionin | |
The Endowment | |
An Experimental Approach Colin F Camerer andDan Lovallo | |
A Cognitive Perspective | |
REVERSALS OF PREFERENCE | |
Amos TverskyShmuel Sattathand Paul Slovic 29 ContextDependent Preferences | |
PART SEVEN CHOICEOVER TIME | |
Evidence and an Interpretation George Loewenstein and Dražen Prelec | |
ReasonBased Choice | |
Is There Anything in There? | |
Diminishing Marginal Utility of Wealth Cannot | |
12 | |
13 | |
Mental Accounting Matters | |
Toward a Positive Theory of Consumer Choice | |
Evidencefrom the Field | |
Myopic Loss Aversion andthe Equity Premium Puzzle Shlomo Benartzi and Richard H Thaler | |
OneDay at a Time | |
Baruch Fischhoff 36 Economic Preferences orAttitude Expressions? An Analysis ofDollar | |
37 | |
39 | |
41 | |
New Challenges to the Rationality Assumption | |
Common terms and phrases
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