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Zagreb International Review of Economics & Business, Vol. 7 No. 1, 2004.

Original scientific paper

The Cumulative Prospect Theory and Managerial Decision Making

Darko Tipurić orcid id orcid.org/0000-0001-8785-0179 ; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
Jasna Prester orcid id orcid.org/0000-0003-3027-841X ; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia

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Abstract

Can managerial decision making be predicted? Why would we want to predict managerial decision making? Managerial job is largely that of making decisions. In order to be successful, those decisions have to be right. In this article authors investigate if the cumulative prospect theory is applicable to managerial decision making and describe some divergent views about the theory. They also explore risk perception under the influence of decision framing. Risk propensity too is explored as it is an alternative way of predicting decision-makers behaviour.

Keywords

prospect theory; cumulative prospect theory; decision making

Hrčak ID:

35608

URI

https://hrcak.srce.hr/35608

Publication date:

1.5.2004.

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