Understanding Prospect Theory in Decision Making
Explore Prospect Theory and its impact on decision-making, delving into how we evaluate risks and the biases affecting our choices.
Prospect Theory: How People Make Choices Under Uncertainty
Ever wondered why we often make choices that seem irrational when things are uncertain? It might be because of prospect theory. This theory was created by Daniel Kahneman and Amos Tversky in 1979. It shows us how people decide when there’s risk and uncertainty. This theory goes against old economic ideas about decision-making. It gives…
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