Prospect Theory (Kahneman & Tversky, 2025) - Weekend Classics

English Podcast Start at 00:00:00Bengali Podcast Start at 00:22:16Hindi Podcast Start at 00:51:43 Welcome to Revise and Resubmit — weekend classics! 🎙️✨Today we crack open “Prospect Theory: An Analysis of Decision under Risk” by Daniel Kahneman and Amos Tversky, published March 1979 in Econometrica — a prestigious journal on the FT50 list — by The Econometric Society. 📚🏛️Some sentences are long, unspooling like a lottery wheel 🎡; some are short. Flip. 🎯We follow choices where certainty seduces and probability whispers.We watch the certainty effect turn sure gains into caution and sure losses into daring. ⚖️We see the isolation effect snip away shared parts of a decision, then—surprise—preferences flip when the frame flips. 🔁Value is felt as gains and losses from a reference point, not as final wealth. 📈➡️📉Losses shout louder than gains. 🗣️Probabilities bend into decision weights: low odds loom large (hello gambling and insurance), while medium odds shrink in the mind. 🎲🧠This is a weekend classic because it changed how we explain risk, not with tidy axioms, but with human hands on the scale. And yes—Econometrica isn’t just any journal; it’s a flagship, FT50, the kind people cite, teach, and build on. 🌟Tap follow and subscribe to Revise and Resubmit on Spotify 🎧, and hit the YouTube “Weekend Researcher” channel ▶️ for deep dives. We’re also on Amazon Prime and Apple Podcast—find us where you listen. 📱✨ Drop your thoughts in the chat 💬 and tell us what frame you’re in today.So, when gains whisper and losses shout, what’s your reference point—and as you weigh your own prospects, will you join us in thanking Daniel Kahneman, Amos Tversky, and The Econometric Society for this enduring classic? 🤔🙏ReferenceKahneman, D., & Tversky, A. (1979). Prospect theory: an Analysis of Decision Under Risk. Econometrica, 47(2), 263–292. https://doi.org/10.2307/1914185‌Youtube Channel⁠https://www.youtube.com/@weekendresearcher⁠Support us on Patreonhttps://patreon.com/weekendresearcher