Sublime

His idea was straightforward: people’s choices are based not on dollar values but on the psychological values of outcomes, their utilities.

people tend to be risk averse in the domain of gains and risk seeking in the domain of losses.

The

They proved that any weighting of uncertain outcomes that is not strictly proportional to probability leads to inconsistencies and other disasters.

psychologist Daniel Kahneman, studied human decision making from the “heuristics and biases” model

My main aim here is to present a view of how the mind works that draws on recent developments in cognitive and social psychology.