Author: Daniel Kahneman
Publisher: Cambridge University Press; 1 edition (September 25, 2000)
Average Rating: 4.5 star
The book ‘Choices, Values, and Frames’ confronts the classical utility theory in an exquisite manner, both theoretically and numerically. Constructing its argument on the 1982 book, Judgement Under Uncertainty, this book presents the framework of ‘prospect theory’ as an alternative. In a very elegant manner, this book conveys the fact that prospect theory is transforming into a new science of decision making. The writer brings together many influential and formative papers on the prospect theory from many renowned economists and decision theorists. Moreover, it includes the work of the late Amos Tversky, whose articles have been collected here for the first time.
The fact that it is not just a self-contained book but rather a compilation of articles produced by several different authors is compelling enough to go through this research at least once. Varying economic phenomenon and the theory of consumer behavior are widely discussed, and several other applications and extensions of such theories have been brought into consideration. The book not only provides a useful insight into complex, real-world puzzles but also includes complete versions of commonly cited articles on decision making. The use of easy terminologies make this book understandable and an enjoyable read for everyone irrespective of their former knowledge in economics or psychology.