Item

Prospect Theory: An Analysis of Decision under Risk

in Papers I Remember by Graham Pickersgill

Prospect Theory: An Analysis of Decision under Risk on “Papers I Remember”, a list by Graham Pickersgill on TheLysts.

Details

Photo
—
Name
—
Tick
Paper
Prospect Theory: An Analysis of Decision under Risk
Authors
Daniel Kahneman, Amos Tversky
Field
Behavioral economics / decision theory
Key idea
People value gains and losses asymmetrically and don’t actually follow expected utility theory when facing risk.
Year
1979
My take
Explains half of insurance buying behaviour and about three quarters of pub arguments about excesses and no-claims bonuses.