Prospect Theory: An Analysis of Decision under Risk

Details

Photo

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Name

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Authors

Daniel Kahneman, Amos Tversky

Year

1979

Field

Behavioral economics

Why it stuck

Explains why I’ll drive 20 minutes to save $5 on beer but won’t renegotiate my internet bill; humans weight losses about twice as much as gains and I feel personally attacked.

My take

Every fantasy-basketball trade argument I’ve ever had could’ve been shorter if both sides had just admitted we’re loss-averse weirdos and moved on.