About Economics: Heuristics Used in Prospect Theory

From Jodi Beggs, your Guide to Economics

Heuristics Used in Prospect Theory

This article outlines the editing heuristics outlined by Kahneman and Tversky in their description of prospect theory.

This article explains what the endowment effect is and why it arises in individual decision making.

This article explains what status-quo bias is and why it arises in individuals' decision-making processes.

This article gives a brief introduction to prospect theory and shows the motivating principle that led to its development.

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