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Prospect theory is a theory of behavioral economics, judgment and decision making that was developed by Daniel Kahneman and Amos Tversky in 1979. [1] The theory was cited in the decision to award Kahneman the 2002 Nobel Memorial Prize in Economics .
The theory of subjective expected utility combines two concepts: first, a personal utility function, and second, a personal probability distribution (usually based on Bayesian probability theory). This theoretical model has been known for its clear and elegant structure and is considered by some researchers to be "the most brilliant axiomatic ...
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 ...
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 ...
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]
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 1976, Macpherson was criticized from some on both the left and the right.In response, he claimed that what he had always been trying to do was to "work out a revision of liberal-democratic theory, a revision that clearly owed a great deal to [Karl] Marx, in the hope of making that theory more democratic while rescuing that valuable part of the liberal tradition which is submerged when ...
The politics-administration dichotomy is an important concept in the field of public administration and shows no signs of going away because it deals with the policy-maker's role as an administrator and the balancing act that is the relationship between politics and administration. [5]