Choices Values and Frames

This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice.

Author: Daniel Kahneman

Publisher: Cambridge University Press

ISBN: 0521627494

Category: Business & Economics

Page: 840

View: 552


This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making.

Cognitive Psychology

Choices , values , and frames . American Psychologist , 39 , 341-350 . Reprinted with permission from the American Psychological Association . Figure 14.5 . From Kahneman , D. , & Tversky , A. ( 1984 ) . Choices , values , and frames .

Author: Ronald T. Kellogg

Publisher: SAGE

ISBN: 0761921303

Category: Psychology

Page: 525

View: 577


As with his best-selling first edition, Ronald T. Kellogg seeks to provide students with a synthesis of cognitive psychology at its best, encapsulating relevant background, theory, and research within each chapter. Understanding cognitive psychology now requires a deeper understanding of the brain than was true in the past. In his thoroughly revised second edition, the author highlights the tremendous contributions from the neurosciences, most notably neuroimaging, in recent years and approaches cognition in the context of both its development and its biological, bodily substrate.

Generating Predictability

Choices , Values , and Frames , ed . Daniel Kahneman and Amos Tversky . Cambridge , Cambridge University Press : 693–708 ( 2000b ) . ' Experienced Utility and Objective Happiness . A Moment - Based Approach . ' Choices , Values , and ...

Author: Christoph Engel

Publisher: Cambridge University Press

ISBN: 1139448307

Category: Psychology


View: 781


Human behaviour is infinitely complex, the result of thousands of interactions between predispositions, external factors and physical and cognitive processes. It is also highly unpredictable, which makes meaningful social engagement difficult without the aid of some external framework such as that offered by an institution. Both formal and informal institutions can provide the element of predictability necessary for successful, complex interactions, a factor which is often overlooked by institutional analysts and designers. Drawing on a wide range of disciplines including psychology, economics, and sociological and political studies, this book develops a coherent and accessible theory for explaining the unpredictability of individual behaviour. The author then highlights the danger of institutional reforms undermining the very capacity to generate predictability which is so central to their success. This book will appeal to academics, researchers and professionals in many fields including management studies, behavioural economics and the new, interdisciplinary field of institutional design.

Framing Risky Choices

Econometrica 47, no. 2: 263–92. – 1984. 'Choices, Values, and Frames.' American Psychologist 39, no. 4: 341–50. Kam, Cindy D., and Elizabeth N. Simas. 2010. 'Risk Orientations and Policy Frames.' Journal of Politics 72, no. 2: 381–96.

Author: Ece Özlem Atikcan

Publisher: McGill-Queen's Press - MQUP

ISBN: 9780228002253

Category: Political Science

Page: 244

View: 382


The majority of policymakers, academics, and members of the general public expected British citizens to vote to remain in the European Union in the 2016 referendum. This perception was based on the well-established idea that voters don't like change or uncertainty. So why did the British public vote to take such a major economic risk? Framing Risky Choices addresses this question by placing the Brexit vote in the bigger picture of EU and Scottish independence referendums. Drawing from extensive interviews and survey data, it asserts that the framing effect – mobilizing voters by encouraging them to think along particular lines – matters, but not every argument is equally effective. Simple, evocative, and emotionally compelling frames that offer negativity are especially effective in changing people's minds. In the Brexit case, the Leave side neutralized the economic risks of Brexit and proposed other risks relating to remaining in the EU, such as losing control of immigration policy and a lack of funding for the National Health Service. These concrete, impassioned arguments struck an immediate and familiar chord with voters. Most intriguingly, the Remain side was silent on these issues, without an emotional case to present. Framing Risky Choices presents a multi-method, comparative, state-of-the-art analysis of how the Brexit campaign contributed to the outcome. Uncovering the core mechanism behind post-truth politics, it shows that the strength of an argument is not its empirical validity but its public appeal.

Foundational Principles of Contract Law

8. See Reid Hastie & Robyn M. Dawes, RATIONAL CHOICE IN AN UNCERTAIN WORLD 300–02 (2001) (discussing the framing effect as a violation of invariance). 9. Daniel Kahneman & Amos Tversky, Choices, Values, and Frames, 39 AM.

Author: Melvin A. Eisenberg

Publisher: Oxford University Press

ISBN: 9780190466381

Category: Law

Page: 504

View: 979


Foundational Principles of Contract Law not only sets out the principles and rules of contract law, it places more emphasis on what the principles and rules of contract law should be, based on policy, morality, and experience. A major premise of the book is that the best way to grasp contract law is to understand it from a critical perspective as an organic, dynamic subject. When contract law is approached in this way it is much easier to grasp and learn than when it is presented simply as a static collection of principles and rules. Professor Eisenberg covers almost all areas of contract law, including the enforceability of promises, remedies for breach of contract, problems of assent, form contracts, the effect of mistake and changed circumstances, interpretation, and problems of performance. Although the emphasis of the book is on the principles and rules of contract law, it also covers important theories in contract law, such as the theory of efficient breach, the theory of overreliance, the normative theory of contracts, formalism, and theories of contract interpretation.

Framing Democracy

(2000), “Prospect Theory in the Wild: Evidence from the Field,” in Choices, Values, and Frames, ed. D. Kahneman and A. Tversky, New York: Cambridge University Press. ——— (2003), Behavioral Game Theory: Experiments in Strategic ...

Author: Jamie Terence Kelly

Publisher: Princeton University Press

ISBN: 9780691155197

Category: Business & Economics

Page: 157

View: 199


The past thirty years have seen a surge of empirical research into political decision making and the influence of framing effects--the phenomenon that occurs when different but equivalent presentations of a decision problem elicit different judgments or preferences. During the same period, political philosophers have become increasingly interested in democratic theory, particularly in deliberative theories of democracy. Unfortunately, the empirical and philosophical studies of democracy have largely proceeded in isolation from each other. As a result, philosophical treatments of democracy have overlooked recent developments in psychology, while the empirical study of framing effects has ignored much contemporary work in political philosophy. In Framing Democracy, Jamie Terence Kelly bridges this divide by explaining the relevance of framing effects for normative theories of democracy. Employing a behavioral approach, Kelly argues for rejecting the rational actor model of decision making and replacing it with an understanding of choice imported from psychology and social science. After surveying the wide array of theories that go under the name of democratic theory, he argues that a behavioral approach enables a focus on three important concerns: moral reasons for endorsing democracy, feasibility considerations governing particular theories, and implications for institutional design. Finally, Kelly assesses a number of methods for addressing framing effects, including proposals to increase the amount of political speech, mechanisms designed to insulate democratic outcomes from flawed decision making, and programs of public education. The first book to develop a behavioral theory of democracy, Framing Democracy has important insights for democratic theory, the social scientific understanding of political decision making, economics, and legal theory.

Private Law Nudging and Behavioural Economic Analysis

DOI: 10.1126/science.1091721 Johnson, Eric/Goldstein, Daniel: Defaults and Donation Decisions, 78 Transplantation (2004), 1713. ... Choices, Values, and Frames, 2009. DOI: 10.1017/cbo9780511803475.043 Kahneman, Daniel: Thinking, ...

Author: Antonios Karampatzos

Publisher: Routledge

ISBN: 9781000028171

Category: Law

Page: 174

View: 671


Offering a fresh perspective on "nudging", this book uses legal paternalism to explore how legal systems may promote good policies without ignoring personal autonomy. It suggests that the dilemma between inefficient opt-in rules and autonomy restricting opt-out schemes fails to realistically capture the span of options available to the policy maker. There is a third path, namely the ‘mandated-choice model’. The book is mainly dedicated to presenting this model and exploring its great potential. Contract law, consumer protection, products safety and regulatory problems such as organ donation or excessive borrowing are the setting for the discussion. Familiarising the reader with a hot debate on paternalism, behavioural economics and private law, this book takes a further step and links this behavioural law and economics discussion with philosophical considerations to shed a light on modern challenges, such as organ donation or consumers protection, by adopting an openly interdisciplinary approach. The book will be of interest to students and scholars of contract law, legal systems, behavioural law and economics, and consumer law.

The Ethics of Shared Decision Making

Choices, Values, and Frames. New York: Russell Sage Foundation, Cambridge University Press; 2000:642–672. 10. Slovic P, Monahan J, MacGregor DG. Violence risk assessment and risk communication: the effects of using actual cases, ...

Author: John D. Lantos

Publisher: Oxford University Press

ISBN: 9780197598597

Category: Medical


View: 676


Patients today are more empowered and knowledgeable than they have ever been. By law, they must be told about the risks and benefits of proposed treatments and give informed consent before treatment is initiated. Through the democratization of medical information, they have access to peer-reviewed medical journals. Social media allows patients to share stories with others and to learn about other people's experiences with various treatments. There are websites written by experts at leading medical schools to help patients understand diseases and treatments. They have the right to see their medical records. The net result of all changes is a shift in the power balance between doctors and patients. Ideally, as a result of these shifts, the patients' values and preferences should guide treatment decisions. However, this proliferation of information often leads to confusion rather than clarity. Publicly available information often includes seemingly contradictory conclusions and recommendations. Patients don't know which opinions to trust. So, although patients have more information than ever, and many want to make decisions for themselves, they need more guidance than ever to help them process an avalanche of information. This volume aims to help both medical professionals and their patients navigate the evolving healthcare landscape by analyzing the process of shared decision-making (SDM) in clinical medicine. The concept of SDM has emerged in the last two decades as a middle ground between, on the one hand, old-fashinioned physician paternalism of the "doctor-knows-best" variety and, on the other hand, unfettered patient autonomy by which patients are thought capable of individually and independently choosing their own medical interventions. Advocates of SDM imagine that decisions will be made best if they follow a complex discussion and negotiation between doctor and patient; such discussions should incorporate the doctor's medical and technical expertise as well as the patient's goals, values, and preferences. SDM takes different forms for different patients in different clinical circumstances. This volume gathers experts in SDM to share their insights about how it ought to be done. The authors include clinicians, social scientist, and philosophers, all of whom have thought about or cared for patients from a variety of backgrounds and in a variety of clinical circumstances. The papers explore the complexity of SDM and offer practical guidance, gained from years of experience, about how to employ SDM as effectively as possible.

Judgement and Choice Perspectives on the Work of Daniel Kahneman

An information processing view of framing effects: The role of causal schemas in decision making. Memory & Cognition, 24, 1–15. Kahneman, D. (2000). Preface. In D. Kahneman & A. Tversky (Eds.), Choices, values, and frames (pp. ix–xvii).

Author: Daniel Kahneman

Publisher: Psychology Press

ISBN: 9781000149906

Category: Psychology

Page: 82

View: 479


The work of Daniel Kahneman and Amos Tversky has transformed the study of judgment and decision-making, and penetrated related disciplines such as economics, finance, marketing, law and medicine. In recognition of these achievements, Kahneman was awarded the Nobel Prize for Economics in 2003. This special issue presents ongoing research inspired by both Kahneman and Tversky. It covers many of the central themes the heuristics and biases of judgment and prediction, framing effects, assessments and predictions of utility that made their work so innovative. The specially written papers illustrate the range and depth of this work, and emphasise its continued relevance to current research.