Chapter19
Behavioral Decision Theory
In This Chapter
- How perspective affects choice
- How reference points influence choice
- How time affects choice
- How ownership affects choice
Chapter 18 started with utility theory but ended with a clinic on how prospect theory explains the quirky ways in which we perceive risky outcomes. In this chapter I continue with one more lesson of prospect theory and then branch out to explore some related topics in behavioral economics.
The main lessons of this chapter are how identical decisions can appear very different to us depending on their storylines, their contexts, and their timeframes. These lessons heighten ...
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