The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PROSPECT THEORY Definition & Legal Meaning

Law dictionary entry - legal definition of embargo

Definition & Citations:

Developed in 1979 by Amos Tversky and Daniel Kahneman. Most individuals will make a decision that will lead to a gain rather than a loss. Risks are put into 2 categories depending whether the outcome is a loss or a gain. These 2 categories of risk are treated in different ways to get the required outcome.


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