The Allais Paradox illustrates how human decisions often deviate from expected utility theory, sparking alternative models in behavioral economics and decision theory.
Anomalies are economic choices that cannot be explained by standard choice theory based on the axioms of preference. The identification of anomalies has led to the development of behavioural economics and the rejection of expected utility theory.
An approach to economic analysis that incorporates psychological insights into human behaviour to explain economic decisions.
A comprehensive exploration of Prospect Theory, which explains how people decide between probabilistic alternatives involving risk, where the probabilities of outcomes are uncertain.
Understanding the role of reference points in decision-making processes through the lens of prospect theory.
An in-depth exploration of Prospect Theory, including its fundamental principles, how it contrasts with expected utility theory, and practical examples to illustrate its application in decision-making under risk and uncertainty.
