# Prospect Theory: An Analysis of Decision under Risk

*Kahneman · Culture & Context, Measurement & Method · Econometrica · 1979 · Open access*

The foundational paper introducing Prospect Theory — a descriptive model of decision-making under risk that systematically departs from expected utility theory. Key findings: losses loom larger than equivalent gains (loss aversion); people are risk-averse for gains but risk-seeking for losses; outcomes are evaluated relative to a reference point, not in absolute terms. Directly relevant to the calculus of voice: the asymmetric weighting of costs and benefits explains why speaking up feels riskier than staying silent even when the expected value favours voice.

- **This page:** https://explore.psychsafety.com/n/kahneman-tversky-1979/
- **View the source paper:** https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Behavioral_Decision_Theory/Kahneman_Tversky_1979_Prospect_theory.pdf
- **Interactive map:** https://explore.psychsafety.com/?mode=papers&node=kahneman-tversky-1979

## Connected concepts (12)

- [Calculus of Voice](https://explore.psychsafety.com/n/the-calculus-of-voice.md)
- [Leadership Behavior and Employee Voice: Is the Door Really Open?](https://explore.psychsafety.com/n/detert-burris-2007.md) (paper)
- [The Liking Gap in Conversations: Do People Like Us More Than We Think?](https://explore.psychsafety.com/n/boothby-et-al-2018.md) (paper)
- [Ambiguity & Predictability](https://explore.psychsafety.com/n/ambiguity-predictability-and-psychological-safety.md)
- [An Uncertainty Management Perspective on Long-Run Impacts of Adversity: The Influence of Childhood Socioeconomic Status on Risk, Time, and Social Preferences](https://explore.psychsafety.com/n/amir-jordan-rand-2018.md) (paper)
- [Implicit Voice Theories: Taken-for-Granted Rules of Self-Censorship at Work](https://explore.psychsafety.com/n/detert-edmondson-2011.md) (paper)
- [Lessons from Everest: The Interaction of Cognitive Bias, Psychological Safety, and System Complexity](https://explore.psychsafety.com/n/roberto-2002.md) (paper)
- [Barriers to PS](https://explore.psychsafety.com/n/barriers-to-psychological-safety.md)
- [Prospect Theory](https://explore.psychsafety.com/n/prospect-theory-and-psychological-safety.md)
- [Risk, Ambiguity, and the Savage Axioms](https://explore.psychsafety.com/n/ellsberg-1961.md) (paper)
- [Types of Silence](https://explore.psychsafety.com/n/types-of-silence.md)
- [Replicating the 'Seductive Allure of Neuroscience Explanations' Effect](https://explore.psychsafety.com/n/vath-et-al-2024.md) (paper)