Kahneman’s behavioral economics was a key principle of the Obama campaign strategy for the national elections; now they’re gambling that people will in the end not want to lose the healthcare that’s been ‘rahmed’ through . The Prospect theory does have prescriptive implications.  Marketers know that dangling gains may not be enough; they hope that, [...]

People, according to the Prospect Theory, don’t analyze options, really, as much as face a gamble. Starting at (0,0) of a kinked curve, the decision maker weighs between possible outcomes. According to the Prospect theory,  the situation typically loses value faster for our decision maker, given same-magnitude losses. Clearly, we have to account for different [...]

Keep the goals, keep the tension, and keep at it