Revised Prospect Theory Value Function Challenges Traditional Decision-Making Frameworks in Pakistan.
Prospect Theory predicts how people make decisions when faced with choices involving gains or losses. A study revised the theory to include people's goals, suggesting they take risks to achieve goals but become risk averse once goals are met. The study tested this with Pakistani professionals and found they were more willing to take risks for losses than gains. However, they were more risk-seeking for outcomes below certain levels than above, supporting the revised theory.