Assignment:
Essay for Risk and Information 2018-2019
The essay title is:
"Discuss and evaluate prospect theory as a theory of choice. Does the difficulty of applying the theory make it a poor theory of choice?"
The essay is due on Thursday 15thNovember 2018 at 12.30 am.
The essay must be submitted electronically via a link that will be posted in the "Assignments" folder of MyDundee
It is strongly advised that you start the essay early so that you have time to read around and write the essay in good time
The essay must be a maximum of 2500 words long.
The following is a list of possible reading material:
Papers:
1) Kahneman D. & Tversky A. (1979) "Prospect Theory: An Analysis of Decision under Risk" Econometrica vol. 47 p. 263-297 (Available on MyDundee)
2) N. C. Barberis (2013) "Thirty Years of Prospect Theory in Economics: A Review and Assessment" Journal of Economic perspectives Vol, 27, No. 1, Pages 173-196
3) R. M. Holmes, P.Bromiley, C. E. Devers, T. R. Holcomb& J. B. McGuire (2011)
"Management Theory Applications of Prospect Theory: Accomplishments, Challenges, and Opportunities"Journal of ManagementVol. 37 No. 4, 1069-1107
4) J. S. Levy (2003) "Applications of Prospect Theory to Political Science" Synthese Vol. 135, No. 2, pp 215-241
5) Rose McDermott (2004)"Prospect Theory in Political Science: Gains and Losses From the First Decade" Political Psychology, Vol. 25, No. 2,
6) Kalyanaram, G. ,Winer, R. S. (1995)"Empirical generalizations from reference price research." Marketing Science. 1995 Part 2 of 2, Vol. 14 Issue 3
7) Shefrin S. & Statman M.(1985) "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence" The Journal of Finance Vol. 40, No. 3, Papers and Proceedings of the Forty-Third Annual Meeting American Finance Association, Dallas, Texas, December 28-30 pp. 777-790
8) Plott C. &Zeiler K. (2007), "Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory?"The American Economic ReviewVol. 97, No. 4 pp. 1449-1466
Ebooks:
1) K. Takemura- (2014) "Behavioural Decision Theory" Springer Heidelberg
2) L.R. Beach & T. Connolly (2005) "The Psychology of decision making: People in organizations" 2nd ed. Sage Publications
3)S. Dahmi (2016) "The Foundations of Behavioural Economic Analysis" Oxford University Press
4) P. Anand et al. (2009)"The Handbook of Rational and Social Choice" Oxford University Press
Books:
1) D. Kahneman (2011) "Thinking fast and slow" Farrar, Straus & Giroux New York
Note that this is not a comprehensive reading list and other sources are possible. For the purposes of this essay you are expected to read around beyond the lecture notes- a mere rehashing of the lecture notes will get minimal marks.