Construct · 1 fields · 1 citations

prospect: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a standalone construct Nearest construct by meaning·not indexed
prospect1 CONSTRUCTProspect theoryKAHNEMAN · RISK

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Behavioural economics

How people really choose among risky bets

In behavioural economics a prospect is a gamble, a set of outcomes each with a probability, and prospect theory is Kahneman and Tversky's account of how people actually choose among such gambles in place of expected-utility theory. Its 1979 Prospect theory: An analysis of decision under risk shows that people value outcomes as gains and losses from a reference point rather than as final wealth, weight losses more heavily than equivalent gains, and distort probabilities. The referent here is a probabilistic choice object and the decision model built on it, a wholly different construct from a patch of promising ground or a potential customer.[1]

Unit
Choices among gambles, modelled with a value function and probability weights
Recovery means
Not applicable
Measured by
Studied through choices between monetary gambles, estimating the value function, loss-aversion coefficient, and probability-weighting function

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Nearby constructs

loss aversion3 names · 4 citationsjangle · losses loom larger, across three fieldsloss2 fields · 3 citationsjingle · one word, two constructsmyopic loss aversion2 names · 2 citationsjangle · one mechanism, several names

References

  1. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185

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