Abstract
The Prospect theory developed by Daniel Kahneman and Amos Tversky represents an alternative theory of decision making under risk opposing the standard Morgenstern–von Neumann Expected utility theory. Normative theory proposes the guideline of “should behave” which is ever questionable as “observed behaviours” do not conform to the same in many cases. Unlike a normative theory, such as Expected utility theory, Prospect theory is a positive theory which is based on “observed behaviours” or “actually behave”. Kahneman and Tversky made various experimental observations which were based on different questions. This paper attempts to revisit the Prospect Theory by using the same questions in the context of Indian evidences. This empirical study helps learning the Prospect theory with “hands on” experimentation. It ends with an optimistic note that these Indian evidences may add some value to the body of knowledge of empirical research in the field of Behavioural Finance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Asian Journal of Research in Business Economics and Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
