Theoretical and Applied Economics
No. 7 / 2006 (502)
A Mental Value Perspective in Risk Decision Theory
Roxana Davidescu
Alexandru Trifu
Universitatea „Petre Andrei” Iasi
Alexandru Trifu
Universitatea „Petre Andrei” Iasi
Abstract. This work is based on Prospect theory, which was developed by D. Kahneman and A. Tversky in 1979. This is one the most quoted and best-documented point of view in economic psychology. First of all, it replaces, once again, the notion of utility with value. But value is defined in terms of gains and losses and this, according with an irrational human tendency to be less willing to gamble with profits than with losses. So, we discover the great importance of these assumptions in the field of risk decision-making, especially for firms’ activity in the marketplace.
Keywords: risk; prospect theory; decision theory; uncertainty; risk decision-making.
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Contents
Marin Dinu
- Organizational Transition and Change Resistance
Ovidiu Nicolescu
Ciprian Nicolescu
- Corporate Governance, between Classicism and Modernism
Niculae Feleaga
Cristina Vasile
- Dilemmas of Modernity in Change
Sultana Suta-Selejan
- Romania. The Pillars for its Sustainable Development
Mirela Roxana Chirita
Emilian M. Dobrescu
- Using Standard-Sole Cost Method for Performance Gestion Accounting and Calculation Cost in the Machine Building Industry
Cleopatra Sendroiu
Aureliana Geta Roman
Costantin Roman
- The Prevailing of the Human Nature in the Economics of Adam Smith
Mara Magda Maftei
- Growth and Efficiency at the Macroeconomic Level
Alexandrina Duta
Nicoleta Sîrghi
Adina Popovici
- A Mental Value Perspective in Risk Decision Theory
Roxana Davidescu
Alexandru Trifu
