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Behavioral Economics – The Motivation for Prospect Theory

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This video gives a motivating example for prospect theory where individuals’ preferences can’t be explained using the traditional expected utility framework. In addition, the lecture contains an interesting discussion regarding experimental best practices. As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic ...

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This video gives a motivating example for prospect theory where individuals’ preferences can’t be explained using the traditional expected utility framework. In addition, the lecture contains an interesting discussion regarding experimental best practices. As told to my students at Northeastern University.



For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/



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