Theoretical and Applied Economics
No. 7 / 2006 (502)
A Mental Value Perspective in Risk Decision Theory
Alexandru Trifu
Universitatea „Petre Andrei” Iasi
Abstract. This work is based on Prospect theory, which was developed by D. Kahneman and A. Tversky in 1979. This is one the most quoted and best-documented point of view in economic psychology. First of all, it replaces, once again, the notion of utility with value. But value is defined in terms of gains and losses and this, according with an irrational human tendency to be less willing to gamble with profits than with losses. So, we discover the great importance of these assumptions in the field of risk decision-making, especially for firms’ activity in the marketplace.
Contents
Arguments for the Study of Institutionalism and Institutional Reform in Romania
Organizational Transition and Change Resistance
Economic Politics, between Individual Interest and Public Interest
Corporate Governance, between Classicism and Modernism
Dilemmas of Modernity in Change
The Economy Governing During Globalization Era
Romania. The Pillars for its Sustainable Development
Using Standard-Sole Cost Method for Performance Gestion Accounting and Calculation Cost in the Machine Building Industry
The Prevailing of the Human Nature in the Economics of Adam Smith
Growth and Efficiency at the Macroeconomic Level
Pollution and Property: Is Relevant Market Failure Theory?
A Mental Value Perspective in Risk Decision Theory