Suchergebnisse

Risk acceptance criteria in the form of limit lines are investigated in the context of prospect theory. This theory departs from utility theory in several respects, an important one being the use of weights other than probabilities in the evaluation of the expected impact of uncertain outcomes. Hypothetical functions reflecting certain attitudes toward consequences and rare events are developed and combined to produce several limit lines.

PROSPECT THEORY SUGGESTS THAT INDIVIDUALS' ORIENTATIONS TOWARD RISK AFFECT PEOPLE'S BEHAVIOR. THIS ESSAY CONSIDERS POLITICAL IMPLICATIONS, EXPLORING THE EXTENT TO WHICH PEOPLE'S VIEWS ABOUT RISK INFLUENCE STATUS QUO ORIENTATIONS, POLITICAL PARTICIPATION, AND POLITICAL INVOLVEMENT. DATA FROM A STUDENT SAMPLE ARE USED TO TEST THESE EXPECTED RELATIONSHIP.

Research supports the efficacy of prospect theory over utility maximization for consumer investment in electricity saving equipment. The findings have implications for designing electric utility programs to promote electricity conservation. Prospect theory describes, explains and organizes consumer behavior that is contrary to consumers maximizing a stable utility function. The results are similar across three ethnic groups.

In this article, recent attempts to apply prospect theory to the study of international relations are reviewed and evaluated. The review of this literature leads to a number of theoretical and methodological critiques that are highlighted by an experiment that demonstrates the difficulties inherent in attempting to transport this theory across disciplinary boundaries. Of special importance is the introduction of verbal probability expressions into the experimental design. The results of the experiment provide some support for prospect theory, but differences in the results obtained for different verbal probability sets indicate that decision theorists need to be more concerned with the manner in which probabilistic information is conveyed to (and discussed by) decision makers.