Choices, Values, and Frames

Front Cover
Daniel 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.
 

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User Review  - browner56 - LibraryThing

Choices, Values, and Frames is not really a self-contained book but rather a compilation of articles produced by several different authors that were originally published mostly in academic journals ... Read full review

Contents

Preface
List of Contributors
AnAnalysis
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
References
Index Subject Index
Copyright

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