Management Theory Applications of Prospect Theory: Accomplishments, Challenges, and Opportunities Academic Article

abstract

• The authors review management research drawing on prospect theory, focusing primarily on studies in strategic management and organizational behavior/human resource management. These studies have made valuable contributions to several prominent research streams. However, they commonly underutilize or misconstrue central arguments from prospect theory. Furthermore, they illustrate that applying prospect theory in organizational settings poses several theoretical and methodological challenges. Thus, the authors review these studies, critically analyze them, and make suggestions to enrich future work.

authors

• Devers, Cynthia

published proceedings

• JOURNAL OF MANAGEMENT

author list (cited authors)

• Holmes, R., Bromiley, P., Devers, C. E., Holcomb, T. R., & McGuire, J. B.

citation count

• 128

complete list of authors

• Holmes, R Michael Jr||Bromiley, Philip||Devers, Cynthia E||Holcomb, Tim R||McGuire, Jean B

publication date

• July 2011

publisher

• SAGE Publications  Publisher

published in

• Journal of Management  Journal

keywords

• Decision Weights
• Diminishing Sensitivity
• Framing
• Loss Aversion
• Probability Weighting Function
• Prospect Theory
• Reference Points
• Risk Taking
• Value Function

Digital Object Identifier (DOI)

• 10.1177/0149206310394863

start page

• 1069

end page

• 1107

volume

• 37

issue

• 4

URL

• http://dx.doi.org/10.1177/0149206310394863