Prospect Theory Definition Examples How To Overcome
What is the Prospect Theory? It’s a Nobel prize-winning work explaining people’s decision-making process under complex and uncertain situations. People analyze the situations and think in terms of gains and losses. It reflects the influence of emotions and attitudes more intense than the logical and rational thinking in the decisions produced. People of any age, gender, or culture can exhibit behavior explained by the theory. Key Takeaways Prospect theory in psychology suggests that people will think about gains and losses and prioritize the potential value of losses and gains rather than the potential outcome while choosing from alternatives....