6533b7d6fe1ef96bd1265a66
RESEARCH PRODUCT
Testing Prospect Theory in a Deterministic Multiple Criteria Decision-Making Environment
Jyrki WalleniusPekka Salminensubject
Information Systems and ManagementManagement scienceStrategy and ManagementUtility theoryContext (language use)General Business Management and AccountingProspect theoryManagement of Technology and InnovationValue (economics)EconomicsMultiple criteriaEconometricsPairwise comparisonPreference (economics)Decision analysisdescription
Prospect theory by Kahneman and Tversky [7] is tested in a deterministic multiple criteria decision-making context. In two experiments conducted in classroom settings subjects made pairwise preference comparisons of condominiums for sale. The results of the experiments indicate that the traditional value model did not explain the subjects' revealed preferences as well as the prospect model. We conclude that prospect theory is a reasonable model of choice for many individuals in such a context.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1993-03-01 | Decision Sciences |