Behavioral Economics - The Motivation for Prospect Theory

This video gives a motivating example for prospect theory where individuals' preferences can't be explained using the traditional expected utility framework. In addition, the lecture contains an interesting discussion regarding experimental best practices. As told to my students at Northeastern University. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.c... For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.c... By Jodi Beggs - Economists Do It With Models http://www.economistsdoitwithmodels.com Facebook:   / economistsdoitwithmodels   Twitter:   / jodiecongirl   Tumblr:   / economistsdoitwithmodels