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The Implications of Prospect Theory for Human Nature and Values
Author(s) -
Jervis Robert
Publication year - 2004
Publication title -
political psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.419
H-Index - 95
eISSN - 1467-9221
pISSN - 0162-895X
DOI - 10.1111/j.1467-9221.2004.00367.x
Subject(s) - harm , pleasure , prospect theory , endowment effect , psychology , positive economics , social psychology , value (mathematics) , human values , position (finance) , endowment , epistemology , sociology , economics , social science , philosophy , finance , neuroscience , machine learning , computer science
Central to prospect theory are far‐reaching claims about what people fear and what gratifies them. Subjective well‐being is a topic that social science has been reluctant to discuss in recent years, but it is central to much of our lives. A loss inflicts more harm than a comparable gain produces pleasure; this fact and the related endowment effect are important parts of our psychological makeup. The importance of change rather than absolute value position, and the related significance of the reference point and how it can be altered, can be seen as integral to human nature.