Abstract
Introduced are the concept and connotation of the prospect theory in behavioral economics, and the theory is used to explore the psychological characteristics and irrational decision behaviors of both supply and demand sides of talents in human resource development of township hospitals. The study found that the limited rational decision of people influenced the policy effectiveness of human resource policy for such hospitals, and the certainty effect strengthened the demand for restoration of government accountability and the breaking of staffing quota limits. The change and difference of reference point resulted in the lack of incentives and turnover of posts in such hospitals. The presence and change of the mental account caused unscientific human resource development. Based on such findings, the prospect theory can provide good explanatory power and theoretical enlightenment for such development. Key words: Township hospital; Talent development; Prospect theory; Application
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