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Created by steven0461 at 3y

An ~~agent based on~~agent, in prospect theory:

- is loss-averse, and so weighs losses (relative to some reference point) more strongly than gains
- is risk-averse with respect to gains, but risk-seeking with respect to losses
- uses probability
~~weighting~~~~:~~weighting: small probabilities count more and larger probabilities count less than they would under expected utility.

- Prospect theory at Psychology Wiki

An attempt by Amos Tversky and Daniel Kahneman to ~~make~~construct a decision theory ~~less rational, but more realistic as a description~~that describes the actual behavior of humans, rather than ~~ordinary~~idealized ~~expected utility~~rational~~.~~ decision-making.

steven0461 v1.0.0Aug 29th 2009 (+544) Created page with 'An attempt by [[Amos Tversky]] and [[Daniel Kahneman]] to make [[decision theory]] less rational, but more realistic as a description of humans, than ordinary [[expected utility]...' 2

An attempt by Amos Tversky and Daniel Kahneman to make decision theory less rational, but more realistic as a description of humans, than ordinary expected utility.

An agent based on prospect theory:

- is loss-averse, and so weighs losses (relative to some reference point) more strongly than gains
- is risk-averse with respect to gains, but risk-seeking with respect to losses
- uses probability weighting: small probabilities count more and larger probabilities count less than they would under expected utility.

~~An~~Prospect Theoryis an attempt by Amos Tversky and Daniel Kahneman to construct a decision theory that describes the actual behavior of humans, rather than idealized rational decision-making.~~by~~~~Roko~~~~by~~~~Yvain~~