HEADLINE: Challenging Prospect Theory: Increasing Sensitivity to Loss in Human Behavior GUEST NAME: Tim Kane SUMMARY: Professor Tim Kane questions Kahneman and Tversky's Prospect Theory, presenting e

HEADLINE: Challenging Prospect Theory: Increasing Sensitivity to Loss in Human Behavior GUEST NAME: Tim Kane SUMMARY: Professor Tim Kane questions Kahneman and Tversky's Prospect Theory, presenting experiments that suggest humans exhibit increasing sensitivity to loss, rather than diminishing, impacting our understanding of complex rationality beyond financial gambles. Professor Tim Kane challenges Kahneman and Tversky's Prospect Theory, arguing that while losses hurt more than gains, people show increasing sensitivity to successive losses, not diminishing sensitivity. His chocolate experiment demonstrated higher demands to part with each subsequent piece, suggesting a "complex rationality" that differs in non-financial contexts from pure monetary gambles. 1900 SWITZERLAND