Skip to content
Cart

Your Cart

×

You have 0 items in your cart.

Register Sign in Wishlist

Prospect Theory
For Risk and Ambiguity

$67.00 (P)

  • Date Published: August 2010
  • availability: Available
  • format: Paperback
  • isbn: 9780521748681

$ 67.00 (P)
Paperback

Add to cart Add to wishlist

Other available formats:
Hardback, eBook


Looking for an examination copy?

If you are interested in the title for your course we can consider offering an examination copy. To register your interest please contact collegesales@cambridge.org providing details of the course you are teaching.

Description
Product filter button
Description
Contents
Resources
Courses
About the Authors
  • Prospect Theory: For Risk and Ambiguity provides the first comprehensive and accessible textbook treatment of the way decisions are made both when we have the statistical probabilities associated with uncertain future events (risk) and when we lack them (ambiguity). The book presents models, primarily prospect theory, that are both tractable and psychologically realistic. A method of presentation is chosen that makes the empirical meaning of each theoretical model completely transparent. Prospect theory has many applications in a wide variety of disciplines. The material in the book has been carefully organized to allow readers to select pathways through the book relevant to their own interests. With numerous exercises and worked examples, the book is ideally suited to the needs of students taking courses in decision theory in economics, mathematics, finance, psychology, management science, health, computer science, Bayesian statistics, and engineering.

    • The most complete and up-to-date textbook on decision theory available
    • Organization of material allows readers with different interests to select appropriate pathways through book so suitable for use on decision courses in economics, business, medicine and engineering
    • Contains 180 exercises with solutions provided for self study plus additional assignments with solutions provided on password-protected website
    Read more

    Reviews & endorsements

    “Peter Wakker’s new book provides a brilliant account of what has happened in the field of decision theory during the last twenty years. Decision analysts will find here many tools and assessment techniques that will enlarge their usual bag of tricks. One of the virtues of the remarkable text is that it will help to reduce the gap between the models developed by decision theorists and the ones used in practice by most decision analysts. Every serious decision analyst should have a copy of this book at hand.” - Denis Bouyssou, CNRS and Université Paris-Dauphine

    “This is a long-overdue book, from one of the leading authorities in the field. Wakker is a leader both on the theoretical underpinnings of decision theory and in applying decision theory to practice; he also has an encyclopaedic knowledge of the field. The book is structured in a way that should make it easily accessible to a broad audience, from more mathematically-oriented readers interested in the foundations to practitioners interested in applying the ideas.” - Joseph Y. Halpern, Cornell University

    “This masterful survey of major theories of choice and of their implications for measurement represents two decades of research and teaching by a flawless perfectionist. Wakker’s view of the field is scholarly, coherent and deeply personal.” - Daniel Kahneman, Princeton University, Nobel Laureate in Economic Sciences, 2002

    "This book organizes, develops and presents both the classical expected utility and newer non-expected utility models of decision making in a way that only Peter Wakker could do. Readers interested in understanding how individuals do, and how they should, make decisions under conditions of risk or uncertainty could do no better than to consult this volume." - Mark Machina, University of California, San Diego

    “Peter Wakker’s book conveys the beauty and practical value of formal thinking about decisions with uncertainty, with minimal mathematical fuss. Scholars who have lived with this material for years will still find much that is new.” - Drazen Prelec, Massachusetts Institute of Technology

    “The need for realistic models of economic decisions involving risk and uncertainty, with plausible behavioral foundations, has never been more acute. Peter Wakker provides an intuitive and accessible, but rigorous, treatment of prospect theory, widely accepted as the main alternative to the hyper-rational expected utility model. This is the only book-length treatment of this important topic, and seems certain to dominate the field for years to come.” - John Quiggin, University of Queensland

    "Given this background, it is not a surprise that his book is a very thoughtful and in-depth overview of prospect theory."
    -- Marc Oliver Rieger, Mathematical Reviews

    See more reviews

    Customer reviews

    Not yet reviewed

    Be the first to review

    Review was not posted due to profanity

    ×

    , create a review

    (If you're not , sign out)

    Please enter the right captcha value
    Please enter a star rating.
    Your review must be a minimum of 12 words.

    How do you rate this item?

    ×

    Product details

    • Date Published: August 2010
    • format: Paperback
    • isbn: 9780521748681
    • length: 518 pages
    • dimensions: 244 x 173 x 23 mm
    • weight: 1kg
    • contains: 106 b/w illus. 57 tables 187 exercises
    • availability: Available
  • Table of Contents

    Preface
    Introduction
    Part I. Expected Utility:
    1. The general model of decision under uncertainty no-arbitrage (expected utility with known utilities and unknown probabilities)
    2. Expected utility with known probabilities - 'risk' - and unknown utilities
    3. Applications of expected utility for risk
    4. Expected utility with unknown probabilities and unknown utilities
    Part II. Nonexpected Utility for Risk:
    5. Heuristic arguments for probabilistic sensitivity and rank dependence
    6. Probabilistic sensitivity and rank dependence analyzed
    7. Applications and extensions of rank dependence
    8. Where prospect theory deviates from rank-dependent utility and expected utility: reference dependence versus asset integration
    9. Prospect theory for decision under risk
    Part III. Nonexpected Utility for Uncertainty:
    10. Extending rank-dependent utility from risk to uncertainty
    11. Ambiguity: where uncertainty extends beyond risk
    12. Prospect theory for uncertainty
    13. Conclusion
    Appendices
    References
    Index.

  • Resources for

    Prospect Theory

    Peter P. Wakker

    Welcome to the resources site

    Here you will find free-of-charge online materials to accompany this book. The range of materials we provide across our academic and higher education titles are an integral part of the book package whether you are a student, instructor, researcher or professional.

    Find resources associated with this title

    Type Name Unlocked * Format Size

    Showing of

    Back to top

    *This title has one or more locked files and access is given only to instructors adopting the textbook for their class. We need to enforce this strictly so that solutions are not made available to students. To gain access to locked resources you either need first to sign in or register for an account.


    These resources are provided free of charge by Cambridge University Press with permission of the author of the corresponding work, but are subject to copyright. You are permitted to view, print and download these resources for your own personal use only, provided any copyright lines on the resources are not removed or altered in any way. Any other use, including but not limited to distribution of the resources in modified form, or via electronic or other media, is strictly prohibited unless you have permission from the author of the corresponding work and provided you give appropriate acknowledgement of the source.

    If you are having problems accessing these resources please email lecturers@cambridge.org

  • Instructors have used or reviewed this title for the following courses

    • Behavior and Decision-making in Politics
    • Behavioral Econ Theory
    • Decision Analysis
    • Decision Analysis ll
    • Seminar in Investments
    • Topics: Decision & Game Theory
    • Topics: Theory of Rsik
  • Author

    Peter P. Wakker, Erasmus Universiteit Rotterdam
    Peter P. Wakker is Professor at the Econometric Institute, Erasmus Universiteit, Rotterdam. His work concerns human decisions under risk and uncertainty from an economic, mathematical and psychological perspective.

Sign In

Please sign in to access your account

Cancel

Not already registered? Create an account now. ×

Sorry, this resource is locked

Please register or sign in to request access. If you are having problems accessing these resources please email lecturers@cambridge.org

Register Sign in
Please note that this file is password protected. You will be asked to input your password on the next screen.

» Proceed

You are now leaving the Cambridge University Press website. Your eBook purchase and download will be completed by our partner www.ebooks.com. Please see the permission section of the www.ebooks.com catalogue page for details of the print & copy limits on our eBooks.

Continue ×

Continue ×

Continue ×

Find content that relates to you

This site uses cookies to improve your experience. Read more Close

Are you sure you want to delete your account?

This cannot be undone.

Cancel

Thank you for your feedback which will help us improve our service.

If you requested a response, we will make sure to get back to you shortly.

×
Please fill in the required fields in your feedback submission.
×