PROSPECT THEORY
\pɹˈɒspɛkt θˈi͡əɹi], \pɹˈɒspɛkt θˈiəɹi], \p_ɹ_ˈɒ_s_p_ɛ_k_t θ_ˈiə_ɹ_i]\
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Developed in 1979 by Amos Tversky and Daniel Kahneman. Most individuals will make a decision that will lead to a gain rather than a loss. Risks are put into 2 categories depending whether the outcome is a loss or a gain. These 2 categories of risk are treated in different ways to get the required outcome.
By Henry Campbell Black
Word of the day
Snake's-head
- Guinea-hen flower; -- so called in England because its spotted petals resemble the scales of a snake's head.