Arbeitspapier
The Origin of Prospect Theory, or Testing the Intuitive Statistician
The origin of prospect theory is the desire to test the intuitive statistician in the real world. The development of this theory by the cognitive psychologists Kahneman and Tversky can be traced to the former's work in cognitive psychophysics, in which deviations from average behavior are termed (statistical) errors; and the latter's work on decision theory, with its normative vs. descriptive framework. The combination of these two types of probabilistic psychology culminated in a new descriptive theory of human decision making in the real world, coined Heuristics and Biases. The 1979 Econometrica article applies this new descriptive theory to economists' EUT. It equates the intuitive statistician with the rational economic man and shows how it descriptively fails.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. 05-111/2
- Classification
-
Wirtschaft
History of Economic Thought: Individuals
Economic Methodology
Microeconomic Behavior: Underlying Principles
Criteria for Decision-Making under Risk and Uncertainty
- Subject
-
Kahneman and Tversky
Prospect Theory
Intuitive Statistician
Heuristics and Biases
- Event
-
Geistige Schöpfung
- (who)
-
Heukelom, Floris
- Event
-
Veröffentlichung
- (who)
-
Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Heukelom, Floris
- Tinbergen Institute
Time of origin
- 2005
Other Objects (12)
Kahneman and Tversky and the Origin of Behavioral Economics
The Political Origin of Pension Funding
Counter Intuitive Results in a Simple Model of Wage Negotiations
The Multinationalization of the Transport Sector
Russian Reforms: the Return of the Peasant?
Who Values The Status of The Entrepreneur?
Increasing the Well-Being of Others On-the-Job and Outside the Workplace
Measuring and Explaining the Limited Take-up of the Housing Benefit in the Netherlands
Null or Zero Players: The Difference between the Shapley Value and the Egalitarian Solution
Inside the Queue
The Financial Trilemma
The Commuting Distribution
Kahneman and Tversky and the Origin of Behavioral Economics
The Political Origin of Pension Funding
Counter Intuitive Results in a Simple Model of Wage Negotiations
The Multinationalization of the Transport Sector
Russian Reforms: the Return of the Peasant?
Who Values The Status of The Entrepreneur?
Increasing the Well-Being of Others On-the-Job and Outside the Workplace
Measuring and Explaining the Limited Take-up of the Housing Benefit in the Netherlands
Null or Zero Players: The Difference between the Shapley Value and the Egalitarian Solution
Inside the Queue
The Financial Trilemma
The Commuting Distribution
Kahneman and Tversky and the Origin of Behavioral Economics
The Political Origin of Pension Funding
Counter Intuitive Results in a Simple Model of Wage Negotiations
The Multinationalization of the Transport Sector
Russian Reforms: the Return of the Peasant?
Who Values The Status of The Entrepreneur?
Increasing the Well-Being of Others On-the-Job and Outside the Workplace
Measuring and Explaining the Limited Take-up of the Housing Benefit in the Netherlands
Null or Zero Players: The Difference between the Shapley Value and the Egalitarian Solution
Inside the Queue
The Financial Trilemma