Foundations of Law and Economics
Prospect Theory: An Analysis of Decision under Risk
Daniel Kahneman and Amos Tversky
- Year
- 1979
- Venue
- Econometrica
- Level
- Advanced
Summary
Develops a descriptive alternative to expected-utility theory for decisions under risk. The article introduces reference dependence, loss aversion, and probability weighting, giving behavioral law-and-economics scholars a foundation for studying settlement, default rules, investor choice, consumer contracting, and legal responses to risk.
Citation
Daniel Kahneman and Amos Tversky. "Prospect Theory: An Analysis of Decision under Risk." Econometrica, 1979.
BibTeX
@article{Kahneman1979Prospect,
title = {Prospect Theory: An Analysis of Decision under Risk},
author = {Daniel Kahneman and Amos Tversky},
year = {1979},
journal = {Econometrica},
url = {https://www.jstor.org/stable/1914185}
}