Prospect Theory: For Risk and Ambiguity

By Peter P. Wakker

Categories: Business & Money, Science & Math

Decision theorist Peter P. Wakker provides a comprehensive textbook on prospect theory and related models of decision making under risk and ambiguity. Building up from expected utility, he explains rank-dependent utility, loss aversion and probability weighting, and shows how these theories can be measured and applied. Representing two decades of research and teaching, the book is written for students and researchers in economics, psychology and management science.

Recommended by 1 person

• Shane Parrish: ““This masterful survey of major theories of choice and of their implications for measurement represents two decades of research and teaching by a flawless perfectionist. Wakker’s view of the field is scholarly, coherent and deeply personal.”—Daniel Kahneman”