Choices, Values, and Frames (Paperback)

~ (Editor), (Editor) "ABSTRACT. We discuss the cognitive and the psychophysical determinants of choice in risky and riskless contexts..." (more)
Key Phrases: median judged probability, compound invariance, median judged probabilities, Amos Tversky, Daniel Kahneman, San Francisco (more...)

Editorial Reviews

Review

"Daniel Kahneman and the late Amos Tversky have started a new perspective on the traditional economic categories of choice, decision, and value. A series of experimental and empirical studies by them and others have rejected traditional economic assumptions of rationality. Even more importantly, these scholars have developed alternative generalizations with significant predictive power and have found empirical verification for them. This outstanding collection of studies will make these new results widely accessible." Kenneth J. Arrow, Joan Kenney Professor of Economics, Emeritus and Professor of Operations Research, Emeritus, Stanford University

Product Description

Choices, Values, and Frames presents an empirical and theoretical challenge to classical utility theory, offering prospect theory as an alternative framework. Extensions and applications to diverse economic phenomena and to studies of consumer behavior are discussed. The book also elaborates on framing effects and other demonstrations that preferences are constructed in context, and it develops new approaches to the standard view of choice-based utility. As with the classic 1982 volume, Judgment Under Uncertainty, this volume is comprised of papers published in diverse academic journals. The editors have written several new chapters and a preface to provide a context for the work.

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Product Details

• Paperback: 860 pages
• Publisher: Cambridge University Press; 1 edition (September 25, 2000)
• Language: English
• ISBN-10: 0521627494
• ISBN-13: 978-0521627498
• Product Dimensions: 9.2 x 6 x 1.4 inches
• Shipping Weight: 2.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (13 customer reviews)
• Amazon.com Sales Rank: #33,322 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

47 of 47 people found the following review helpful:

5.0 out of 5 stars SIGNIFICANT ADVANCES IN ECONOMICS THAT LED TO NOBEL PRIZE, July 15, 2003

By	Denis Benchimol Minev "Amazonia" (Manaus, Amazonas, Brazil) - See all my reviews

Kahneman and Tversky's compilation of articles in this book is an outstanding exposition of recent advances in cognitive psychology, especially advances associated with prospect theory. The work presented in this volume is largely responsible for the authors being awarded the Nobel Prize (Tversky died before receiving it).

The text is somewhat dense at parts, being aimed at economists and psychologists with some mathematical familiarity. However, the portions of the book that require much mathematics can safely be bypassed without losing much of the substance of the text. This text is the most credible presentation of an alternative theory to the rational actor theory usually assumed in economics. For example, some of the articles help explain the magnitude of the equity return premium, or help show how people make choices differently in similar situations based simply on the way the situation is presented.

I would highly recommend this book to anyone interested in decision making theory, especially as it relates to consumer behavior. It is a brilliant volume that includes the most important articles by the leading mind in the field.

50 of 54 people found the following review helpful:

5.0 out of 5 stars The Cutting Edge of Behavioral Decision Theory, August 23, 2001

By	Herbert Gintis (Northampton, MA USA) - See all my reviews (TOP 1000 REVIEWER)

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Daniel Kahneman and Amos Tversky have spent their whole lives developing an alternative to the "rational actor" model of human decision-making, the standard of traditional economic theory and the decision sciences. Their ideas were received rather well from the start, but in recent years, their alternative, which we can fairly call "behavioral economics" has virtually displaced traditional decision theory as an active research area.

People often think of the Kahneman-Tversky behaviorists as "bomb-throwers" in the sense that they appear to love to destroy traditional concepts of rationality rather that put constructive models in their place. This collection, which consists of 42 very high quality essays by the leading lights of the field, shows clearly that this is not the case. Prospect theory, loss aversion, framing effets, status quo effect, and the like are carefully modeled in this book. I came away quite impressed.

It is a shame that Amos Tversky never lived to see the light of day of this fine volume. It is certainly a vigorous vindication of his lifetime research agenda.

34 of 38 people found the following review helpful:

5.0 out of 5 stars Choices, Values and Frames, December 1, 2001

By	P. Hawley (UK) - See all my reviews (REAL NAME)

A definitive text. Choices, Values and Frames is no casual read but is a first class exposition of the basics in this area of cognitive psychology. I read it from the perspective of a healthcare practitioner trying to understand more about why 'risk' judgements seem so variable and subjective. The insights gained from Choices, Values and Frames have already modified my behaviour.

The only weakness of the text is that it assumes that the reader has reasonable literacy in manipulating abstract mathematical concepts. More exposition would have been appreciated here. However, even if one does not understand the more 'mathematical' sections the book as a whole is still an engaging exposition of how humans process decisions under risk and uncertainty.

A 'must read' for anybody seriously interested in, but unfamiliar with, this area of cognitive psychology