"[...] outcomes as gains and losses, not as states of wealth (p. 279) [...] role of the
reference point from which the options are evaluated. (p. 281) Evaluation is relative to a neutral reference point, which is sometimes referred to as an 'adaptation level' (p. 282) [...] the Humans described by prospect theory are guided by the
immediate emotional impact of gains and losses, not by long-term prospects of wealth and global utility. (p. 286-287)". (
Kahneman, 2011, Prospect theory, Chapter 26, Part IV. Choices).
Keywords:
evaluation of financial outcomes,
carriers of value, reference state, loss aversion,
disappointment,
wealth,
regret,
Richard Thaler
Kahneman, Daniel. Thinking, fast and slow. Farrar, Straus and Giroux, New York, 2011.
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GregorioIvanoff - 18 Dec 2022
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