Journal ArticleDOI
The Framing of Decisions and the Psychology of Choice
Amos Tversky,Daniel Kahneman +1 more
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The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways.Abstract:
The psychological principles that govern the perception of decision problems and the evaluation of probabilities and outcomes produce predictable shifts of preference when the same problem is framed in different ways. Reversals of preference are demonstrated in choices regarding monetary outcomes, both hypothetical and real, and in questions pertaining to the loss of human lives. The effects of frames on preferences are compared to the effects of perspectives on perceptual appearance. The dependence of preferences on the formulation of decision problems is a significant concern for the theory of rational choice.read more
Citations
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Journal ArticleDOI
The Impact of Affective Reactions on Risky Decision Making in Accounting Contexts
TL;DR: This paper examined whether managers' affective reactions influence their risk-taking tendencies in capital budgeting decisions and found that when affect was present, decision makers tended to reject investment alternatives that elicited negative affect and accept alternatives elicited positive affect, resulting in risk-avoiding in gain (loss) contexts.
Journal ArticleDOI
A reexamination of agency theory assumptions: extensions and extrapolations
TL;DR: In this article, the authors discuss agency theory in the context of the individual principal and agent, and also in the organization and its groups, and propose alternative propositions based on a relaxing of agency theory's assumptions.
Journal ArticleDOI
The Effect of Framing on Choice Interactions with Risk-Taking Propensity, Cognitive Style, and Sex
N. S. Fagley,Paul M. Miller +1 more
TL;DR: This article explored three reasons for the varied results: differences between the samples in risk-taking propensity, differences in gender composition, and use of different decision problems and found that women were affected by framing, while men generally were not.
Journal ArticleDOI
Framing Effects and Arenas of Choice: Your Money or Your Life?
N. S. Fagley,Paul M. Miller +1 more
TL;DR: In this article, the authors investigated the consistency of outcome framing effects on choice across two arenas of outcome: human life and money, and found that subjects made riskier choices when outcomes involved human lives rather than money.
Journal ArticleDOI
Parasites and biological invasions: parallels, interactions, and control
TL;DR: This work examines how two key processes of redistribution - biological invasion and disease emergence - are interlinked, and calls for international policy that acknowledges the strong links between emerging diseases and invasion risk.
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Book
Judgment Under Uncertainty: Heuristics and Biases
Amos Tversky,Daniel Kahneman +1 more
TL;DR: The authors described three heuristics that are employed in making judgements under uncertainty: representativeness, availability of instances or scenarios, and adjustment from an anchor, which is usually employed in numerical prediction when a relevant value is available.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
Book
Theory of Games and Economic Behavior
TL;DR: Theory of games and economic behavior as mentioned in this paper is the classic work upon which modern-day game theory is based, and it has been widely used to analyze a host of real-world phenomena from arms races to optimal policy choices of presidential candidates, from vaccination policy to major league baseball salary negotiations.
Journal ArticleDOI
A Behavioral Model of Rational Choice
TL;DR: In this article, a model for the description of rational choice by organisms of limited computational ability is proposed, and the model is used to describe rational choice in organisms with limited computational abilities.