Episode #5 - Prospect Theory and Framing Part 1
Manage episode 371027539 series 3485712
In this episode, we continue our conversation on a previous podcast by doing a deeper dive on Prospect Theory. Here, we learn that prospect theory is four-fold and how to understand and use the prospect theory utility function.
00:00 Introduction
04:17 Decision #1 - Gain Domain - Risk Averse
07:06 Decision #2 - Loss Domain - Risk Seeking
10:00 Diminishing Value Sensitivity - Prospect Theory Utility Function
16:19 Four Fold Pattern of Prospect Theory - Decision #3 - Gain Domain
20:34 Four Fold Pattern of Prospect Theory - Decision #4 - Loss Domain
27:53 Integration vs. Segregation - Prospect Theory Utility Function on Multiple Coin Flips
I hope you enjoy the content and learn all about the topic of Behavioral Finance. I've set up the first few podcasts as mini lectures of my Behavioral Finance course that I teach at Butler University each semester. The goal of this podcast is to provide a comprehensive look into the topic of Behavioral Finance - for free!
Bryan Foltice Behavioral Finance Website - www.bryanfoltice.com
Instagram - www.instagram.com/bryanfoltice
Linkedin - https://www.linkedin.com/in/bryan-foltice-2578a116/
Disclaimer: www.bryanfoltice.com/cv
40 episoder