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A revised version, called cumulative prospect theory overcame this problem by using a probability weighting function derived from rank-dependent expected utility theory. Cumulative prospect theory can also be used for infinitely many or even continuous outcomes (for example, if the outcome can be any real number). An alternative solution to ...
Positive political theory (PPT), explanatory political theory, or formal theory is the study of politics using formal methods such as social choice theory, game theory, and statistical analysis. In particular, social choice theoretic methods are often used to describe and (axiomatically) analyze the performance of rules or institutions.
In 1979, Daniel Kahneman and Amos Tversky traced the cause of the disposition effect to the so-called "prospect theory". [3] The prospect theory proposes that when an individual is presented with two equal choices, one having possible gains and the other with possible losses, the individual is more likely to opt for the former choice even ...
It is a further development and variant of prospect theory. The difference between this version and the original version of prospect theory is that weighting is applied to the cumulative probability distribution function, as in rank-dependent expected utility theory but not applied to
The most dangerous trajectory in world politics is a long rise followed by the prospect of a sharp decline. They claim that several of Allison's cases in fact follow this pattern—and not that of the Thucydides Trap—including the Russo-Japanese War , World War I , and the Pacific War (they also point to America's imperial foray after the ...
Framing theory and frame analysis provide a broad theoretical approach that analysts have used in communication studies, news (Johnson-Cartee, 1995), politics, and social movements (among other applications). According to Bert Klandermans, the "social construction of collective action frames" involves "public discourse, that is, the interface ...
Reference dependence is a central principle in prospect theory and behavioral economics generally. It holds that people evaluate outcomes and express preferences relative to an existing reference point, or status quo. It is related to loss aversion and the endowment effect. [1] [2]
Download as PDF; Printable version; In other projects Wikimedia Commons; Wikidata item; ... Behavioral economics: Prospect theory. Pages in category "Prospect theory"