Prospect Theory: For Risk and Ambiguity, provides a comprehensive and accessible textbook treatment of the way decisions are made both when we have the statistical probabilities associated with uncertain future events (risk) and when we lack them (ambiguity). The book presents models, primarily prospect theory, that are both tractable and psychologically realistic. A method of presentation is chosen that makes the empirical meaning of each theoretical model completely transparent. Prospect theory has many applications in a wide variety of disciplines. The material in the book has been carefully organized to allow readers to select pathways through the book relevant to their own interests. With numerous exercises and worked examples, the book is ideally suited to the needs of students taking courses in decision theory in economics, mathematics, finance, psychology, management science, health, computer science, Bayesian statistics, and engineering.
This handbook in two parts covers key topics of the theory of financial decision making. Some of the papers discuss real applications or case studies as well. There are a number of new papers that have never been published before especially in Part II.Part I is concerned with Decision Making Under Uncertainty. This includes subsections on Arbitrage, Utility Theory, Risk Aversion and Static Portfolio Theory, and Stochastic Dominance. Part II is concerned with Dynamic Modeling that is the transition for static decision making to multiperiod decision making. The analysis starts with Risk Measures and then discusses Dynamic Portfolio Theory, Tactical Asset Allocation and Asset-Liability Management Using Utility and Goal Based Consumption-Investment Decision Models.A comprehensive set of problems both computational and review and mind expanding with many unsolved problems are in an accompanying problems book. The handbook plus the book of problems form a very strong set of materials for PhD and Masters courses both as the main or as supplementary text in finance theory, financial decision making and portfolio theory. For researchers, it is a valuable resource being an up to date treatment of topics in the classic books on these topics by Johnathan Ingersoll in 1988, and William Ziemba and Raymond Vickson in 1975 (updated 2 nd edition published in 2006).
Devoted exclusively to prospective memory, this volume organizes the research and thoughts of the important contributors to the field in one comprehensive resource. The chapter authors not only focus on their own work, but also review other research areas and address those where the methods and theories from the retrospective memory literature are useful and where they fall short. Each section is followed by at least one commentary written by a prominent scholar in the field of memory. The commentators present critical analyses of the chapters, note ideas that they found particularly exciting, and use these ideas as a foundation on which to elaborate their own views of prospective memory. This volume will stimulate the thinking of active prospective memory researchers, provide a coherent organization of the area for the increasing number of people who are interested in prospective memory but who are not yet actively conducting research in the area, and serve as a book of readings for upper division seminars.
Engaged research and qualitative theory building in the social sciences are among the greatest adventures and significant vocations life can present. The impact of good theory, no matter how tiny or vast, can instantly move across our intimate planet and affect every human and living system in this interconnected, relationally alive, and reverberating universe. Ideas change the world. Ideas can be about life and they can be life-giving in the sense that they can inspire, enliven, and open us to new horizons and new depths. A new idea, especially the idea whose time has come in a prospective and betterment sense, does more than inform: it transforms. We've all experienced it. A single new understanding can change us deeply.This book-emerging from the needs and urging of David's doctoral students and those who care about engaged scholarship-is about the craft of grounded and future-forming theory construction. It's a way of doing research in the human sciences that exists, in William James' contrast, "not as a dull habit but as an acute fever." This book, today used in doctoral research courses and masters programs in organization development, unites the original purpose of Appreciative Inquiry with the domains of grounded theory, generative theory, enlivenment world-views, and the art and science of portraiture. Taken together this volume provides a manifesto and clear framework for prospective theory-building. Prospective theory is:1. Theory inspired by life, and it is designed to apprehend the best in all of life's fullest, most meaningful, and best future possibilities while being grounded in the midst of the extraordinary, the ordinary, as well as the tragic;2. Has the enlivenment and generative capacity to challenge the status quo and open the world to new better possibilities for life and living;3. Articulates a future story of prospective possibility. It involves a proleptic merging of the ideal conditioned in the texture of the actual-e.g., vivid utopias that are right there in front of us-informing our future story for establishing the new and eclipsing the old.
In this searing polemic, Lee Edelman outlines a radically uncompromising new ethics of queer theory. His main target is the all-pervasive figure of the child, which he reads as the linchpin of our universal politics of “reproductive futurism.” Edelman argues that the child, understood as innocence in need of protection, represents the possibility of the future against which the queer is positioned as the embodiment of a relentlessly narcissistic, antisocial, and future-negating drive. He boldly insists that the efficacy of queerness lies in its very willingness to embrace this refusal of the social and political order. In No Future, Edelman urges queers to abandon the stance of accommodation and accede to their status as figures for the force of a negativity that he links with irony, jouissance, and, ultimately, the death drive itself. Closely engaging with literary texts, Edelman makes a compelling case for imagining Scrooge without Tiny Tim and Silas Marner without little Eppie. Looking to Alfred Hitchcock’s films, he embraces two of the director’s most notorious creations: the sadistic Leonard of North by Northwest, who steps on the hand that holds the couple precariously above the abyss, and the terrifying title figures of The Birds, with their predilection for children. Edelman enlarges the reach of contemporary psychoanalytic theory as he brings it to bear not only on works of literature and film but also on such current political flashpoints as gay marriage and gay parenting. Throwing down the theoretical gauntlet, No Future reimagines queerness with a passion certain to spark an equally impassioned debate among its readers.
The Capital Asset Pricing Model (CAPM) and the mean-variance (M-V) rule, which are based on classic expected utility theory, have been heavily criticized theoretically and empirically. The advent of behavioral economics, prospect theory and other psychology-minded approaches in finance challenges the rational investor model from which CAPM and M-V derive. Haim Levy argues that the tension between the classic financial models and behavioral economics approaches is more apparent than real. This book aims to relax the tension between the two paradigms. Specifically, Professor Levy shows that although behavioral economics contradicts aspects of expected utility theory, CAPM and M-V are intact in both expected utility theory and cumulative prospect theory frameworks. There is furthermore no evidence to reject CAPM empirically when ex-ante parameters are employed. Professionals may thus comfortably teach and use CAPM and behavioral economics or cumulative prospect theory as coexisting paradigms.
In the years since it first published, Neuroeconomics: Decision Making and the Brain has become the standard reference and textbook in the burgeoning field of neuroeconomics. The second edition, a nearly complete revision of this landmark book, will set a new standard. This new edition features five sections designed to serve as both classroom-friendly introductions to each of the major subareas in neuroeconomics, and as advanced synopses of all that has been accomplished in the last two decades in this rapidly expanding academic discipline. The first of these sections provides useful introductions to the disciplines of microeconomics, the psychology of judgment and decision, computational neuroscience, and anthropology for scholars and students seeking interdisciplinary breadth. The second section provides an overview of how human and animal preferences are represented in the mammalian nervous systems. Chapters on risk, time preferences, social preferences, emotion, pharmacology, and common neural currencies—each written by leading experts—lay out the foundations of neuroeconomic thought. The third section contains both overview and in-depth chapters on the fundamentals of reinforcement learning, value learning, and value representation. The fourth section, "The Neural Mechanisms for Choice, integrates what is known about the decision-making architecture into state-of-the-art models of how we make choices. The final section embeds these mechanisms in a larger social context, showing how these mechanisms function during social decision-making in both humans and animals. The book provides a historically rich exposition in each of its chapters and emphasizes both the accomplishments and the controversies in the field. A clear explanatory style and a single expository voice characterize all chapters, making core issues in economics, psychology, and neuroscience accessible to scholars from all disciplines. The volume is essential reading for anyone interested in neuroeconomics in particular or decision making in general. - Editors and contributing authors are among the acknowledged experts and founders in the field, making this the authoritative reference for neuroeconomics - Suitable as an advanced undergraduate or graduate textbook as well as a thorough reference for active researchers - Introductory chapters on economics, psychology, neuroscience, and anthropology provide students and scholars from any discipline with the keys to understanding this interdisciplinary field - Detailed chapters on subjects that include reinforcement learning, risk, inter-temporal choice, drift-diffusion models, game theory, and prospect theory make this an invaluable reference - Published in association with the Society for Neuroeconomics—www.neuroeconomics.org - Full-color presentation throughout with numerous carefully selected illustrations to highlight key concepts
