Prospect theory helps us understand how people make decisions in uncertain situations. People are more afraid of losing what they have than they are excited about gaining something new. This theory has been studied in international relations, especially in security and foreign policy. Researchers have looked at how leaders make decisions based on avoiding losses or seeking gains. They found that people tend to play it safe when they think they are gaining something, but take risks to avoid losses. This theory has been tested in real-world situations and has led to new ideas about how countries interact with each other.