Behavioral Decision Theory

[dungeonbachelor]

I can see my home on the map in the background :)

[bzweig88]

This paper was actually published in 1979 in Econometrica.

[DarkwingScooter]

What I find odd about this is that one should rationally conclude that there is a problem with the way of representing probability in that way rather than the decisions made.

That is my take from it anyhow.

One obvious problem is that it ignores the social reality that someone who says he will give you money later may be lying and if there was someone who offered you a chance to lessen the pain, there is a real chance they could do it again.

Utility is real, monetary value a notional fiction.

[DUFreefallClub]

Thanks for that, have got a Behavioural Finance exam tomorrow and needed a reminder on Prospect Theory. This did the trick!

[yamborghini3]

why is the disease asian? lol

[emdje]

Nice, I just started reading this paper for an exam, now I don't have to any more!! :D

Question: That pointer of yours is that a barbecue stick with the and wrapped with paper? ;D

[zamurin13]

@emdje HA i got my paper tomorrow..unfortunately i'l need more videos for the other topics :P

[spacerumsfeld]

Unless I'm mistaken, at 4:54 I think you meant to say, "There's a one-third chance that 600 people will be saved." It's an important correction so that people can keep track of the argument!

[TheFlowLox]

so true. we have captured 89% of our candidates and the number can improve. i think we will soon have millions in our core.

good vid, and easy to understand.

it's ur lucky day! LOL

[CogitoErgoCogitoSum]

I believe this is called Prospect Theory... at least the first segment of the video

[mrinvesting]

Great examples to help understand the emphasis we place on risk avoidance. Thanks

[niconiconico]

What allenu said. :)

[allenu]

Great summary. Thanks. I was looking for just such a summary of Prospect theory. Nice discussion about "framing" at the end of the video too.