Prospect Theory Summary - Deepstash
Prospect Theory Summary

Prospect Theory Summary

Thus, there are 3 cognitive features in prospect theory:

  • Evaluation based on a reference point
  • Diminishing sensitivity (borrowed from Bernoulli)
  • Loss aversion

The theory does not take into account human feelings of disappointment when failing to win gambles.

2.65K

4.84K reads

CURATED FROM

IDEAS CURATED BY

cristianpopa

Full-time AI specialist, part-time reader with ideas

The idea is part of this collection:

What Is Opportunity Cost

Learn more about scienceandnature with this collection

The impact of opportunity cost on personal and professional life

Evaluating the benefits and drawbacks of different choices

Understanding the concept of opportunity cost

Related collections

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates