The opportunity-threat theory of decision-making under risk

A new theory of decision-making under risk, the Opportunity-Threat Theory is proposed. Analysis of risk into opportunity and threat components allows description of behavior as a combination of opportunity seeking and threat aversion. Expected utility is a special case of this model. The final evalu...

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Main Author:	Mohan Pandey
Format:	Article
Language:	English
Published:	Society for Judgment and Decision Making 2018-01-01
Series:	Judgment and Decision Making
Subjects:	decision risk opportunity threat expected utility prospect theory transfer of attention exchange behaviorNAKeywords
Online Access:	http://journal.sjdm.org/17/17120/jdm17120.pdf

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spelling	doaj-a7fd8afcc9564199ab6e424faf01b2f72021-05-02T16:45:27ZengSociety for Judgment and Decision MakingJudgment and Decision Making1930-29752018-01-011313341The opportunity-threat theory of decision-making under riskMohan PandeyA new theory of decision-making under risk, the Opportunity-Threat Theory is proposed. Analysis of risk into opportunity and threat components allows description of behavior as a combination of opportunity seeking and threat aversion. Expected utility is a special case of this model. The final evaluation is an integration of the impacts of opportunity and threat with this expectation. The model can account for basic results as well as several ``new paradoxes'' that refuted cumulative prospect theory in favor of configural weight models. The discussion notes similarities and differences of this model to the configural weight TAX model, which can also account for the new paradoxes.http://journal.sjdm.org/17/17120/jdm17120.pdfdecision risk opportunity threat expected utility prospect theory transfer of attention exchange behaviorNAKeywords
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Mohan Pandey
spellingShingle	Mohan Pandey The opportunity-threat theory of decision-making under risk Judgment and Decision Making decision risk opportunity threat expected utility prospect theory transfer of attention exchange behaviorNAKeywords
author_facet	Mohan Pandey
author_sort	Mohan Pandey
title	The opportunity-threat theory of decision-making under risk
title_short	The opportunity-threat theory of decision-making under risk
title_full	The opportunity-threat theory of decision-making under risk
title_fullStr	The opportunity-threat theory of decision-making under risk
title_full_unstemmed	The opportunity-threat theory of decision-making under risk
title_sort	the opportunity-threat theory of decision-making under risk
publisher	Society for Judgment and Decision Making
series	Judgment and Decision Making
issn	1930-2975
publishDate	2018-01-01
description	A new theory of decision-making under risk, the Opportunity-Threat Theory is proposed. Analysis of risk into opportunity and threat components allows description of behavior as a combination of opportunity seeking and threat aversion. Expected utility is a special case of this model. The final evaluation is an integration of the impacts of opportunity and threat with this expectation. The model can account for basic results as well as several ``new paradoxes'' that refuted cumulative prospect theory in favor of configural weight models. The discussion notes similarities and differences of this model to the configural weight TAX model, which can also account for the new paradoxes.
topic	decision risk opportunity threat expected utility prospect theory transfer of attention exchange behaviorNAKeywords
url	http://journal.sjdm.org/17/17120/jdm17120.pdf
work_keys_str_mv	AT mohanpandey theopportunitythreattheoryofdecisionmakingunderrisk
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The opportunity-threat theory of decision-making under risk

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