Think Fast with Daniel Kahneman
Hidden Brain
00:00
Is There a Way to Explain Prospect Theory?
Prospectt was the work which you were cited for in the nobell prize, among other things. Was formulated first in 17 38 and has been around a long time. It says that when you're looking at a gamble, what you're evaluating is two states of wealth: your wealth if you will win, and yours if you will lose. And so people accepted that theory. But it doesn't make sense if you stop to think about it. People don't think of gains and losses as esstates of wealth. They just don't.
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