Choices, Values, and Frames
Contributors: Daniel Kahneman (Editor); Amos Tversky (Editor)
Publisher: Cambridge University Press; Russell sage Foundation
Published: September 25, 2000
Language: eng
Format: Hardcover
Number of pages: 848
ISBN-13: 9780521621724
Subjects: Cognition & cognitive psychology; Economics; Risk-taking (Psychology); Decision-making; Business Decision Making; Decision-Making (Psychological Aspects); Value; Business & Economics; Business / Economics / Finance; Psychology; Personality; General; Decision Making & Problem Solving; Psychology & Psychiatry / Cognitive Psychology; Uncertainty; Management - General
First sentence: Making decisions is like speaking prose - people do it all the time, knowingly or unknowingly.
Description: This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making.