This is a legacy website for the Behavioural Design Lab. It is no longer updated.
Behavioural Design Lab Subscribe Bird Contact

Prospect Theory: For Risk and Ambiguity

Economics, Psychology, bayes, decision making, risk, uncertainty

Amazon Description

Prospect Theory: For Risk and Ambiguity, first published in 2010, provided the first comprehensive and accessible textbook treatment of the way decisions are made both when we have the statistical probabilities associated with uncertain future events (risk) and when we lack them (ambiguity). The book presents models, primarily prospect theory, that are both tractable and psychologically realistic. A method of presentation is chosen that makes the empirical meaning of each theoretical model completely transparent. Prospect theory has many applications in a wide variety of disciplines. The material in the book has been carefully organized to allow readers to select pathways through the book relevant to their own interests. With numerous exercises and worked examples, the book is ideally suited to the needs of students taking courses in decision theory in economics, mathematics, finance, psychology, management science, health, computer science, Bayesian statistics, and engineering.

Related content

Leaders as Decision Architects

Do humans make good decisions?

Communicating Uncertainty — Ebola, Public Health, and the Scientific Process

© 2015 Warwick Business School and the Design Council