The Framing of Decisions and the Psychology of Choice

The Framing of Decisions and the Psychology of Choice

Kahneman has worked on the process of decision situation of uncertainty. He explained that individual verdicts might differ scientifically from those provided classical economic theory. He has developed, with Tversky's “Prospect theory" to better reflect the behavior observed.

When a person estimates the probability of occurrence of certain events based on the degree of ease with which they can construct examples of that event is considered to employ the availability heuristic. This heuristic is often associated with personal experiences and perspectives, so they ...