decisionmaking

SummaryImagine a choice between two gambles: getting $100 with a probability of 20% or getting $50 with a probability of 80%. In 1979, Kahneman and Tversky published prospect theory (1), a mathematically specified descriptive theory of how…

Discovering better theoriesTheories of human decision-making have proliferated in recent years. However, these theories are often difficult to distinguish from each other and offer limited improvement in accounting for patterns in…