Prospect Theory. An Analysis of Decision Making Under Risk

Abstract

The theoretical basis of decision analysis is utility theory, which describes the principles upon which people wish to base their decisions. This article questions the validity of utility theory and offers an alternative, 'prospect theory.' In addition to providing evidence in support of prospect theory, this paper discusses its implications for the theory and practice of decision analysis. It suggests, for example, ways in which subtle changes in elicitation procedure can have marked effects on people's expressed values.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1977
Accession Number
ADA045771

Entities

People

  • Amos Tversky
  • Daniel Kahneman

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Applied Psychology
  • Behavioral Sciences
  • Biological Sciences
  • Decision Theory
  • Defense Systems
  • Economics
  • Engineering
  • Human Factors Engineering
  • Military Research
  • Money
  • New York
  • Operations Research
  • Political Science
  • Psychology
  • Social Sciences
  • Students
  • Systems Engineering

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  • Team-Based Human-Centered Cognitive Task Decision Making and Information Performance.