Category: Behavioral theories
Posted in Behavioral theories
Prospect theory: How do we make choices?
Updated on March 25, 2023 We are not rational when we make choices under risk and uncertainty. This is because we prefer certainty. We do not want to live in uncertainty. Look at the following scenarios; These examples appear in Daniel Kahneman and Amos Tversky’s 1979 paper on prospect theory….
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Diffusion of Innovation Theory and the First Follower
Derek Siver’s first follower: One evening, a crowd numbering about 100 were sitting and chatting on a greenery garden in front of a beach. Suddenly a young lad stood out, marched forward, and started to dance according to the tune of the music playing behind. He was without his shirt. A…
