This book reviews and integrates the most recent research and theories on this exciting topic, and features original contributions from leading researchers ...

In this study, we assessed the influence of trait anger on decisions in risky situations evaluating how it might interact with some contextual factors. One hundred and fifty-eight participants completed the Trait Anger scale of STAXI-2 and an inventory consisting of a battery of hypothetical everyday decision-making scenarios, representative of three specific domains: financial, social and health. Participants were also asked to evaluate familiarity and salience for each scenario. This study provides evidence for a relationship between individual differences in the (...) tendency to feel anger and risky decisions in different domains and for mediation effects of familiarity and salience perception. The evaluation of the mechanisms with which dispositional anger is linked to risky decision-making could further contribute to an understanding of the role of personality traits in decision-making processes. (shrink)

This book presents the definitive exposition of 'prospect theory', a compelling alternative to the classical utility theory of choice. Building on the 1982 volume, Judgement Under Uncertainty, this book brings together seminal papers on prospect theory from economists, decision theorists, and psychologists, including the work of the late Amos Tversky, whose contributions are collected here for the first time. While remaining within a rational choice framework, prospect theory delivers more accurate, empirically verified predictions in key test cases, as well as (...) helping to explain many complex, real-world puzzles. In this volume, it is brought to bear on phenomena as diverse as the principles of legal compensation, the equity premium puzzle in financial markets, and the number of hours that New York cab drivers choose to drive on rainy days. Theoretically elegant and empirically robust, this volume shows how prospect theory has matured into a new science of decision making. (shrink)