Prospect Theory: An Analysis of Decision under Risk – Daniel Kahneman & Amos Tversky

Details

Photo

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Name

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Field

Behavioral economics / psychology

Year

1979

One-line gist

Shows how we systematically misjudge gains and losses, caring more about not losing than about winning.

Best when

You’re trying to understand why everyone freaks out over small risks but shrugs at big, fuzzy ones.

My take

Not exactly bedtime reading, but once you get the basic curve-in-your-head idea, you start spotting it everywhere from salary talks to splitting the bill with friends.