Prospect Theory and Decision-Making Phenomena

  • Kazuhisa Takemura


Prospect theory, proposed by Kahneman and Tversky (1979) (Tversky and Kahneman 1992), is a theory that combines the knowledge of behavioral decision theory and nonlinear utility theory (or generalized expected utility theory). This chapter first reports the forecasts derived from the basic assumptions of prospect theory and empirical examples of such forecasts. It subsequently provides an overview of a new version of cumulative prospect theory that explains decision-making not only under risk but also under uncertainty and in light of experimental research into this theory.


Condition Group Test Subject Utility Theory Prospect Theory Loss Aversion 
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Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Kazuhisa Takemura
    • 1
  1. 1.Department of PsychologyWaseda UniversityTokyoJapan

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