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:Â
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
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Journal ArticleDOI
An ecological perspective on the valuation of ecosystem services
TL;DR: In this paper, the authors present a critical review on the neoclassical economic framework, tools used for economic valuation of ecosystem services and the economic welfare approach to collective decision-making, from an ecological perspective.
Posted Content
Beyond Nudges: Tools of a Choice Architecture
Eric Johnson,Suzzane B. Shu,Benedict G. C. Dellaert,Benedict G. C. Dellaert,Craig R. Fox,Daniel G. Goldstein,Daniel G. Goldstein,Gerald Haeubl,Richard P. Larrick,John W. Payne,Ellen Peters,Ellen Peters,David Schkade,Brian Wansink,Elke U. Weber +14 more
TL;DR: The way a choice is presented influences what a decisionmaker chooses as discussed by the authors, and the choice architecture tools available to choice architects can be divided into two categories: those used in structuring the choice task and those used to describe the choice options.
Journal ArticleDOI
The development of risk-taking: A multi-perspective review
TL;DR: This article reviewed four research perspectives that have been used to investigate the development of risk-taking and argued that factors within each of these perspectives interact to influence the probability that an individual will engage in risky activities, which should be the topic of future research.
Posted Content
Reconciling Efficient Markets with Behavioral Finance: The Adaptive Markets Hypothesis
Andrew W. Lo,Andrew W. Lo +1 more
TL;DR: In this paper, the Adaptive Markets Hypothesis (AMH) is proposed, which is based on evolutionary principles and implies that the degree of market efficiency is related to environmental factors characterizing market ecology such as the number of competitors in the market, the magnitude of profit opportunities available, and the adaptability of the market participants.
Journal ArticleDOI
Mimicking Political Debate with Survey Questions: The Case of White Opinion on Affirmative Action for Blacks
Donald R. Kinder,Lynn M. Sanders +1 more
TL;DR: This paper found that framing the issue as unfair advantage as opposed to reverse discrimination produced opinions on affirmative action among whites that were more coherent with their views on other race policies; associated more closely with their opinions on policies plausibly, but not explicitly, implicating race (such as welfare); and linked more tightly to negative emotions provoked by preferential treatment; more consistent with their general political views; evocative of prejudice and misgivin...
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.