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. (Verlagstext)
Contents
1. Choices, Values, and Frames / Daniel Kahneman and Amos Tversky
2. Prospect Theory: An Analysis of Decision under Risk / Daniel Kahneman and Amos Tversky
3. Advances in Prospect Theory: Cumulative Representation of Uncertainty / Amos Tversky and Daniel Kahneman
4. Compound Invariant Weighting Functions in Prospect Theory / Drazen Prelec
5. Weighing Risk and Uncertainty / Amos Tversky and Craig R. Fox
6. A Belief-Based Account of Decision under Uncertainty / Craig R. Fox and Amos Tversky
7. Loss Aversion in Riskless Choice: A Reference-Dependent Model / Amos Tversky and Daniel Kahneman
8. Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias / Daniel Kahneman, Jack L. Knetsch and Richard H. Thaler
9. The Endowment Effect and Evidence of Nonreversible Indifference Curves / Jack L. Knetsch
10. A Test of the Theory of Reference-Dependent Preferences / Ian Bateman, Alistair Munro and Bruce Rhodes / [and others]
11. Diminishing Marginal Utility of Wealth Cannot Explain Risk Aversion / Matthew Rabin 12. Rational Choice and the Framing of Decisions / Amos Tversky and Daniel Kahneman
13. Framing, Probability Distortions, and Insurance Decisions / Eric J. Johnson, John Hershey and Jacqueline Meszaros / [and others]
14. Mental Accounting Matters / Richard H. Thaler
15. Toward a Positive Theory of Consumer Choice / Richard H. Thaler
16. Prospect Theory in the Wild: Evidence from the Field / Colin F. Camerer
17. Myopic Loss Aversion and the Equity Premium Puzzle / Shlomo Benartzi and Richard H. Thaler
18. Fairness as a Constraint on Profit Seeking: Entitlements in the Market / Daniel Kahneman, Jack L. Knetsch and Richard H. Thaler
19. Money Illusion / Eldar Shafir, Peter Diamond and Amos Tversky
20. Labor Supply of New York City Cab Drivers: One Day at a Time / Colin F. Camerer, Linda Babcock and George Loewenstein / [and others].
21. Are Investors Reluctant to Realize Their Losses? / Terrance Odean
22. Timid Choices and Bold Forecast: A Cognitive Perspective on Risk Taking / Daniel Kahneman and Dan Lovallo
23. Overconfidence and Excess Entry: An Experimental Approach / Colin F. Camerer and Dan Lovallo
24. Judicial Choice and Disparities between Measures of Economic Values / David Cohen and Jack L. Knetsch
25. Contrasting Rational and Psychological Analyses of Political Choice / George A. Quattrone and Amos Tversky
26. Conflict Resolution: A Cognitive Perspective / Daniel Kahneman and Amos Tversky -- 27. The Construction of Preference / Paul Slovic
28. Contingent Weighting in Judgment and Choice / Amos Tversky, Shmuel Sattath and Paul Slovic
29. Context-Dependent Preferences / Amos Tversky and Itamar Simonson
30. Ambiguity Aversion and Comparative Ignorance / Craig R. Fox and Amos Tversky -- 31. Attribute Evaluability: Its Implications for Joint-Separate Evaluation Reversals and Beyond / Christopher K. Hsee
32. Preferences for Sequences of Outcomes / George F. Loewenstein and Drazen Prelec
33. Anomalies in Intertemporal Choice: Evidence and an Interpretation / George Loewenstein and Drazen Prelec
34. Reason-Based Choice / Eldar Shafir, Itamar Simonson and Amos Tversky
35. Value Elicitation: Is There Anything in There? / Baruch Fischhoff
36. Economic Preferences of Attitude Expressions? An Analysis of Dollar Responses to Public Issues / Daniel Kahneman, Ilana Ritov and David Schkade
37. Experienced Utility and Objective Happiness: A Moment-Based Approach / Daniel Kahneman
38. Evaluation by Moments: Past and Future / Daniel Kahneman
39. Endowments and Contrast in Judgments of Well-Being / Amos Tversky and Dale Griffin
40. A Bias in the Prediction of Tastes / George Loewenstein and Daniel Adler.
41. The Effect of Purchase Quantity and Timing on Variety-Seeking Behavior / Itamar Simonson
42. New Challenges to the Rationality Assumption / Daniel Kahneman.