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The Cumulative Prospect Theory and Managerial Decision Making

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Author Info
Darko Tipuric (Graduate School of Economics and Business, University of Zagreb, Croatia)
Jasna Prester (Graduate School of Economics and Business, University of Zagreb, Croatia)
Abstract

Can managerial decision making be predicted? Why would we want to predict managerial decision making? Managerial job is largely that of making decisions. In order to be successful, those decisions have to be right. In this article authors investigate if the cumulative prospect theory is applicable to managerial decision making and describe some divergent views about the theory. They also explore risk perception under the influence of decision framing. Risk propensity too is explored as it is an alternative way of predicting decision-makers behaviour.

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Publisher Info
Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

Volume (Year): 7 (2004)
Issue (Month): 1 (May)
Pages: 61-80
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Handle: RePEc:zag:zirebs:v:7:y:2004:i:1:p:61-80

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Related research
Keywords: prospect theory; cumulative prospect theory; decision making;

Find related papers by JEL classification:
M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics

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This page was last updated on 2010-1-7.

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