Earlier this month, NPR’s Shankar Vedantam floated the idea that something called "prospect theory" could explain Russian President Vladimir Putin’s invasion of Crimea. A behavioral economic model ...

Prospect theory [1, 2, 3] has perhaps been one of the most influential theories within psychology and behavioral economics. Daniel Kahneman won the Nobel prize for this work. Prospect theory and ...

Prospect theory, proposed by Kahneman and Tversky in 1979, has been acknowledged as an excellent decision-making theory for the bounded rationality of investors tending to show cognitive bias under ...

Open this photo in gallery: Which is stronger: the thrill of victory or the agony of defeat? Psychologists Daniel Kahneman and Amos Tversky explored this concept nearly 50 years ago, finding humans ...

You've been hearing a bit about Daniel Kahneman, the psychologist and Nobel laureate, recently, thanks to the publication of his new book, "Thinking, Fast and Slow." This graphic illustrates how the ...

Why do we have cluttered closets, kitchen drawers, or stacks of untouched supplies in our office? It is easy to accumulate things, but so hard to then get rid of them. One explanation is that we feel ...