Prospect theory
Prospect theory describes how people weigh gains and losses relative to a reference point, fearing losses more.
At a glance
Key signals
0% cross fields · reaches 0 more
- Behavioral Economics
- Economics
- Behavioral Science
- Explanation
- Examples
- Misconception
- Sourced relations
- Attribution
Dependencies
What this concept builds on and what it makes possible — derived from the atlas’s dependency, causal and structural relations, not from every related edge.
System context
Loss aversionis part ofProspect theoryEstablished
Loss aversion is a part of Prospect theory.
Structural role & consequence
Interpreted from the current atlas graph — what the connections mean, not just how many there are.
Currently dark in the atlas: no key date stored · 2 of 2 of its relations lack claim-level evidence.
atlas representation · Describes the current Thinking OS representation, not the state of the world.
Structural neighbourhood: 2 → 15 → 21 concepts reachable within 3 hops.
structural · Structural reach — being reachable is not the same as being understood.
All 2 of its relationships stay within its own discipline — a field-specific concept in the current atlas.
structural · Structural graph analysis — not a claim of importance, causation or history.
cross-field
2 within-field, 0 cross-field
Strengths & constraints
Constraints
- Evidence coverage currently thin in the atlas — few of its relationships carry claim-level evidence. atlas representation
- No dated history stored — the atlas records no key date for this concept. atlas representation
Conditions
- Read structurally — most of its relationships carry no external evidence yet, so claims here are graph-derived. structural
Seen through each discipline
How this concept sits in each of its fields — derived from its real connections in the graph, not asserted.
Through this lens it connects to Cognitive bias.
Through this lens it connects to Cognitive bias.
Through this lens it connects to Cognitive bias and Loss aversion.
Related ideas to explore
Concepts that look related but are not yet connected here — candidates for a connection to reason about, not established links.
- Connects 2 other ideas across 3 disciplines.
- Most of its connections are of the “Kind & structure” kind.
Derived from the graph’s real structure — observations, not a score.
Sources
- Die Prospect Theory und ihre Konsequenzen (2014) verified
- Prospect Theory in the Wild: (2011) verified
- Specific Applications of Prospect Theory to Behavioral Finance (2016) verified
- Prospect Theory (2016) verified