Prospect Theory: An Analysis of Decision Under Risk

In the late 1970s, two psychologists named Kahnemann and Tversky, questioned the expected utility theory that had been previously developed by economists. This work was the first publication in a major economics journal by non-economists, and eventually this pair was awarded a Nobel Prize. Belen Chavez, Yan Huang, Tanya Mallavarapu, and Quanhe Wang presented this paper to the Econ 206 class and provided the notes on Porpsect Theory: An Analysis of Decision under Risk. Enjoy!