Prospect Theory User Experience (UX) topic overview/definition
Prospect Theory: Concept DefinitionIn economic theory it was once considered that all economic decisions were made on a rational basis based on choice between two (or sometimes more) economic values. However, behavioral economics has discovered that in fact that people generally do not behave rationally and that they may make poor economic decisions on value because of this. Prospect theory describes the way people choose between different value outcomes when there is a measure of risk involved in those outcomes.
For your convenience, we’ve collected all UX literature that deals with Prospect Theory. Here’s the full list:
Loss Aversion Theory - The Economics of Design
If people were rational then the feelings invoked by losing something or gaining something (of equal value) ought to be the same. We should feel as pleased that our friend has just given us $100 for our birthdays as we feel bad that we have lost $100 when we forgot to take it from an ATM machine.In reality this isn’t the case. Psychologists and ...
Prospect Theory - The Economics of Design
Economists once assumed that every actor in an economic system would be rational. That people would calculate the value of what they had and what they could have in the future accurately and that they would make their decisions based on that calculation. Unfortunately, in practice this was rarely the case – in fact traditional economic models an...