Amos Tversky

Cognitive psychologist at Hebrew University and Stanford who developed prospect theory with Daniel Kahneman; died in 1996.

Prospect theory replaced expected utility with a model in which people judge outcomes as gains and losses against a reference point and weight probabilities non-linearly, which is the origin of loss aversion and of most later work on investor behaviour. Choices, Values, and Frames collects those papers together with the framing experiments showing that how a choice is presented changes which option people take.

1 books of their own