[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v5y1996i1p19-38.html
   My bibliography  Save this article

Prospect theory: A literature review

Author

Listed:
  • Edwards, Kimberley D.
Abstract
No abstract is available for this item.

Suggested Citation

  • Edwards, Kimberley D., 1996. "Prospect theory: A literature review," International Review of Financial Analysis, Elsevier, vol. 5(1), pages 19-38.
    • Handle: RePEc:eee:finana:v:5:y:1996:i:1:p:19-38
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057-5219(96)90004-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leclerc, France & Schmitt, Bernd H & Dube, Laurette, 1995. "Waiting Time and Decision Making: Is Time like Money?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(1), pages 110-119, June.
    2. Robin M. Hogarth & Hillel J. Einhorn, 1990. "Venture Theory: A Model of Decision Weights," Management Science, INFORMS, vol. 36(7), pages 780-803, July.
    3. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
    4. Elliott, Catherine S. & Archibald, Robert B., 1989. "Subjective framing and attitudes towards risk," Journal of Economic Psychology, Elsevier, vol. 10(3), pages 321-328, November.
    5. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    6. Chang, Otto H. & Nichols, Donald R. & Schultz, Joseph J., 1987. "Taxpayer attitudes toward tax audit risk," Journal of Economic Psychology, Elsevier, vol. 8(3), pages 299-309, September.
    7. Schaubroeck, John & Davis, Elaine, 1994. "Prospect Theory Predictions When Escalation Is Not the Only Chance to Recover Sunk Costs," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(1), pages 59-82, January.
    8. Shafir, Eldar B. & Osherson, Daniel N. & Smith, Edward E., 1993. "The Advantage Model: A Comparative Theory of Evaluation and Choice under Risk," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(3), pages 325-378, August.
    9. Garland, Howard & Newport, Stephanie, 1991. "Effects of absolute and relative sunk costs on the decision to persist with a course of action," Organizational Behavior and Human Decision Processes, Elsevier, vol. 48(1), pages 55-69, February.
    10. John W. Payne & Dan J. Laughhunn & Roy Crum, 1984. "Multiattribute Risky Choice Behavior: The Editing of Complex Prospects," Management Science, INFORMS, vol. 30(11), pages 1350-1361, November.
    11. Budescu, David V. & Weiss, Wendy, 1987. "Reflection of transitive and intransitive preferences: A test of prospect theory," Organizational Behavior and Human Decision Processes, Elsevier, vol. 39(2), pages 184-202, April.
    12. Hirst, D. Eric & Joyce, Edward J. & Schadewald, Michael S., 1994. "Mental Accounting and Outcome Contiguity in Consumer-Borrowing Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 58(1), pages 136-152, April.
    13. Jeff T. Casey, 1994. "Buyers' Pricing Behavior for Risky Alternatives: Encoding Processes and Preference Reversals," Management Science, INFORMS, vol. 40(6), pages 730-749, June.
    14. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    15. Bruce G. S. Hardie & Eric J. Johnson & Peter S. Fader, 1993. "Modeling Loss Aversion and Reference Dependence Effects on Brand Choice," Marketing Science, INFORMS, vol. 12(4), pages 378-394.
    16. Shlomo Benartzi & Richard H. Thaler, 1995. "Myopic Loss Aversion and the Equity Premium Puzzle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 73-92.
    17. Bromley, Daniel W., 1989. "Entitlements, missing markets, and environmental uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 17(2), pages 181-194, September.
    18. Kanto, Antti J. & Rosenqvist, Gunnar & Suvas, Arto, 1992. "On utility function estimation of racetrack bettors," Journal of Economic Psychology, Elsevier, vol. 13(3), pages 491-498, September.
    19. Jorge Martinez-Vazquez & Gordon B. Harwood & Ernest R. Larkins, 1992. "Withholding Position and Income Tax Compliance: Some Experimental Evidence," Public Finance Review, , vol. 20(2), pages 152-174, April.
    20. VINAYAK Bhattacharjee & CHARLES J. Cicchetti & WILLIAM F. Rankin, 1993. "Energy Utilities, Conservation, And Economic Efficiency," Contemporary Economic Policy, Western Economic Association International, vol. 11(1), pages 69-75, January.
    21. Gregory, Robin, 1986. "Interpreting measures of economic loss: Evidence from contingent valuation and experimental studies," Journal of Environmental Economics and Management, Elsevier, vol. 13(4), pages 325-337, December.
    22. Paese, Paul W., 1995. "Effects of Framing on Actual Time Allocation Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 61(1), pages 67-76, January.
    23. Fiegenbaum, Avi, 1990. "Prospect theory and the risk-return association : An empirical examination in 85 industries," Journal of Economic Behavior & Organization, Elsevier, vol. 14(2), pages 187-203, October.
    24. Robert J. Meyer & João Assunção, 1990. "The Optimality of Consumer Stockpiling Strategies," Marketing Science, INFORMS, vol. 9(1), pages 18-41.
    25. Peter C. Mayer, 1995. "Electricity Conservation: Consumer Rationality Versus Prospect Theory," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 109-118, April.
    26. Richard A. D'Aveni, 1989. "Dependability and Organizational Bankruptcy: An Application of Agency and Prospect Theory," Management Science, INFORMS, vol. 35(9), pages 1120-1138, September.
    27. Kameda, Tatsuya & Davis, James H., 1990. "The function of the reference point in individual and group risk decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 46(1), pages 55-76, June.
    28. Paul Newman, D., 1980. "Prospect theory: Implications for information evaluation," Accounting, Organizations and Society, Elsevier, vol. 5(2), pages 217-230, April.
    29. Hersh Shefrin & Meir Statman, 1993. "Behavioral Aspects of the Design and Marketing of Financial Products," Financial Management, Financial Management Association, vol. 22(2), Summer.
    30. Arkes, Hal R. & Blumer, Catherine, 1985. "The psychology of sunk cost," Organizational Behavior and Human Decision Processes, Elsevier, vol. 35(1), pages 124-140, February.
    31. Whyte, Glen, 1993. "Escalating Commitment in Individual and Group Decision Making: A Prospect Theory Approach," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(3), pages 430-455, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Levy, Haim & Levy, Moshe, 2002. "Experimental test of the prospect theory value function: A stochastic dominance approach," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1058-1081, November.
    2. Kuhberger, Anton, 1998. "The Influence of Framing on Risky Decisions: A Meta-analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 75(1), pages 23-55, July.
    3. Kuhberger, Anton & Schulte-Mecklenbeck, Michael & Perner, Josef, 1999. "The Effects of Framing, Reflection, Probability, and Payoff on Risk Preference in Choice Tasks, ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 78(3), pages 204-231, June.
    4. Northcraft, Gregory B. & Preston, Jared N. & Neale, Margaret A. & Kim, Peter H. & Thomas-Hunt, Melissa C., 1998. "Non-linear Preference Functions and Negotiated Outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 73(1), pages 54-75, January.
    5. W. Wong & R. Chan, 2008. "Prospect and Markowitz stochastic dominance," Annals of Finance, Springer, vol. 4(1), pages 105-129, January.
    6. Peter Wakker & Veronika Köbberling & Christiane Schwieren, 2007. "Prospect-theory’s Diminishing Sensitivity Versus Economics’ Intrinsic Utility of Money: How the Introduction of the Euro can be Used to Disentangle the Two Empirically," Theory and Decision, Springer, vol. 63(3), pages 205-231, November.
    7. Arkes, Hal R. & Hirshleifer, David & Jiang, Danling & Lim, Sonya S., 2010. "A cross-cultural study of reference point adaptation: Evidence from China, Korea, and the US," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 99-111, July.
    8. Moshe Levy & Haim Levy, 2013. "Prospect Theory: Much Ado About Nothing?," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 7, pages 129-144, World Scientific Publishing Co. Pte. Ltd..
    9. Teck-Hua Ho & Juanjuan Zhang, 2008. "Designing Pricing Contracts for Boundedly Rational Customers: Does the Framing of the Fixed Fee Matter?," Management Science, INFORMS, vol. 54(4), pages 686-700, April.
    10. Ulrich Schmidt & Horst Zank, 2012. "A genuine foundation for prospect theory," Journal of Risk and Uncertainty, Springer, vol. 45(2), pages 97-113, October.
    11. Daniel Friedman & Kai Pommerenke & Rajan Lukose & Garrett Milam & Bernardo Huberman, 2007. "Searching for the sunk cost fallacy," Experimental Economics, Springer;Economic Science Association, vol. 10(1), pages 79-104, March.
    12. Heutel, Garth, 2019. "Prospect theory and energy efficiency," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 236-254.
    13. Connor, Robert A., 1996. "More than risk reduction: The investment appeal of insurance," Journal of Economic Psychology, Elsevier, vol. 17(1), pages 39-54, February.
    14. Thomas Langer & Martin Weber, 2001. "Prospect Theory, Mental Accounting, and Differences in Aggregated and Segregated Evaluation of Lottery Portfolios," Management Science, INFORMS, vol. 47(5), pages 716-733, May.
    15. Dierkes, Maik & Erner, Carsten & Zeisberger, Stefan, 2010. "Investment horizon and the attractiveness of investment strategies: A behavioral approach," Journal of Banking & Finance, Elsevier, vol. 34(5), pages 1032-1046, May.
    16. Katarzyna Kochaniak & Paweł Ulman, 2020. "Risk-Intolerant but Risk-Taking—Towards a Better Understanding of Inconsistent Survey Responses of the Euro Area Households," Sustainability, MDPI, vol. 12(17), pages 1-26, August.
    17. Pragati Hemrajani & Rajni & Rahul Dhiman, 2024. "Retail Investors’ Financial Risk Tolerance and Risk-taking Behaviour: The Role of Psychological Factors," FIIB Business Review, , vol. 13(1), pages 87-105, January.
    18. Platteau, Jean-Philippe & Ugarte Ontiveros, Darwin, 2021. "Cognitive bias in insurance: Evidence from a health scheme in India," World Development, Elsevier, vol. 144(C).
    19. Antonides, Gerrit, 1995. "Entrapment in risky investments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 24(3), pages 447-461.
    20. Kalayci, Erkan & Basdas, Ulkem, 2010. "Does the prospect theory also hold for power traders? Empirical evidence from a Swiss energy company," Review of Financial Economics, Elsevier, vol. 19(1), pages 38-45, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:5:y:1996:i:1:p:19-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.