Linked from

The 28 pages that link to Prospect theory, each with the reason it gives.

• Behavioral economicsRelated: It explains why people evaluate risky gains and losses asymmetrically.

• UtilityCompared with: Its value function departs from expected-utility predictions in observed risky choices.

• Decision theoryCompared with: It explains systematic departures from expected-utility predictions.

• Expected utilityCompared with: It accounts for choice patterns that systematically depart from expected utility.

• Decision-makingRelated: It explains why losses and gains can influence choices asymmetrically.

• Daniel KahnemanBroader topic: Kahneman and Tversky developed it to explain choices that expected utility theory could not predict.

• Bounded rationalityRelated: It offers a distinct psychological account of systematic departures from expected-utility predictions.

• Risk aversionCompared with: Its value function can produce risk aversion for gains and risk seeking for losses.

• Expected utility hypothesisCompared with: It explains patterns of risky choice that expected utility struggles to predict.

• Cognitive biasRelated: It formalized choice patterns that conflict with classical economic predictions.

• Amos TverskyBroader topic: Tversky and Kahneman developed this account to explain departures from expected-utility predictions.

• Bayesian decision theoryCompared with: Its account of observed choices departs from expected-utility assumptions about preferences.

• Behavioral financeRelated: It explains how loss aversion and framing alter choices involving money.

• Framing effectRelated: Its reference dependence and loss aversion explain why gain and loss frames can produce different choices.

• Consumer choiceCompared with: Its reference dependence and loss aversion depart from standard utility maximization.

• Loss aversionNarrower topic: Its value function gives losses a steeper slope than gains, formalizing loss aversion.

• Allais paradoxRelated: Its decision weights can reproduce the probability sensitivity revealed by the paradox.

• Endowment effectNarrower topic: Its reference dependence and loss aversion supplied a framework for explaining the effect.

• St. Petersburg paradoxRelated: It offers a later psychological account of risky choices beyond expected utility.

• Richard ThalerRelated: Daniel Kahneman and Amos Tversky’s account of judgment under risk shaped Thaler’s work.

• Disposition effectRelated: Its loss aversion and reference dependence help explain reluctance to sell losing investments.

• Maurice AllaisRelated: The Allais paradox helped motivate alternatives to expected utility, including this influential model.

• Von Neumann–Morgenstern utility theoremCompared with: It explains systematic departures from expected utility, including responses to certainty and loss.

• Consumer behaviourRelated: It predicts risk-sensitive choices that standard rational-choice accounts miss.

• NeuroeconomicsCompared with: Its departures from expected utility motivate neural studies of framing and loss sensitivity.

• Pseudocertainty effectRelated: It explains why changing the presentation of a staged gamble can change choices without changing overall probabilities.

• Rational choice modelCompared with: It predicts systematic departures from expected-utility choice under risk.

• Subadditivity effectRelated: Its account of probability weighting helped motivate later explanations of subadditive estimates.