BELİRSİZLİK ALTINDA KARAR ALMA: GELENEKSEL ve MODERN YAKLAŞIMLAR

Abstract

Decision making behaviors of individuals have long been investigated in economics literature. The expected value theory was criticized since it cannot explain the real world and prospect theory, which is more consistent with human behaviors, was offered as an alternative. On the other side, as a newly emerging field, neuroeconomics explains human behaviors on neurological basis. In this paper, after first reviewing decision making under uncertainty literature, we provide a wide literature review on expected value theory, prospect theory and neuroeconomics. To that end, we emphasize the deficiencies of expected value theory, and then analyze the fundamentals of prospect theory and its relationship between neuroeconomics