Conclusion By Nathan Reiff Common sense might suggest that individuals combine the net effect of the gains and the losses associated with any choice in order to make an educated evaluation of whether that choice is desirable. Inbehavioral finance founders Kahneman and Tversky presented a concept called prospect theory. Prospect theory holds that people tend to value gains and losses differently from one another, and, as a result, will base decisions on perceived gains rather than on perceived losses. For that reason, a person faced with two equal choices that are presented differently one in terms of possible gains and one in terms of possible losses is likely to choose the one suggesting gains, even if the two choices yield the same end result.
Introduction Despite 50 years Prospect theory development experience, fundamental questions remain unanswered. The world still lacks a comprehensive theoretical framework that adequately explains such phenomenon as the accelerating velocity of development exhibited by East Asian countries, the failure of Malthusian projections, the growing contribution of non-material resources not subject to depletion, the apparent failure of market policies in the transition of Eastern Europe, and conflicting predictions about the future of work based on the contrary recent experiences of North America and Prospect theory Europe.
A profusion of economic theories provide explanations for specific expressions of development, but none unite the pieces into a unified theory that adequately defines the central principles, process and stages of development. The formulation of a comprehensive theory of development would make conscious the world's experience over the past years, reveal enormous untapped potentials and vastly accelerate the speed of future progress.
This paper is identifies the central principle of development and traces its expression in different fields, levels and stages of expression. Development is a function of society's capacity to organize human energies and productive resources to respond to opportunities and challenges.
The paper traces the stages in the emergence of higher, more complex, more productive levels of social organization through the historical stages of nomadic hunting, rural agrarian, urban, commercial, industrial and post-industrial societies. It examines the process by which new activities are introduced by pioneers, imitated, resisted, accepted, organized, institutionalized and assimilated into the culture.
Organizational development takes place on a foundation of three levels of infrastructure - physical, organizational and mental. Four types of resources contribute to development, of which only the most material are inherently limited in nature. The productivity of resources increases enormously as the level of organization and input of knowledge rises.
Historically, social development has passed through three progressive, but overlapping stages in which three different components of human consciousness served as primary engines for social advancement. The paper draws parallels between the catalytic role of population growth, urbanization, the spread of a money economy, and, most recently, Internet as accelerators of the development process.
Looking backward, the development achievements of the world over the past five decades have been unprecedented and remarkable. Looking forward into the next century, daunting developmental challenges confront humanity. Despite 50 years of intensive effort, the world is still blindly groping for adequate answers to fundamental questions about development and for effective strategies to accelerate the process.
Recent accomplishments point to the possibility of converting these 50 years of experience into a conscious and consistent theoretical knowledge.
Impending challenges point to the need for a comprehensive theory of social development that will lead to the formulation of more effective strategies.
Observations and Questions about Recent Development Experience A few observations highlight some striking aspects of recent development experience that need to be theoretically understood and some perplexing questions that need to be answered to meet the opportunities and challenges of the coming years.
The world has made greater progress in eradicating poverty over the past 50 years than during the previous Over the past five decades, average per capita income in the world more than tripled, in spite of unprecedented population growth.
In developing countries, real per capita consumption rose by 70 percent between and What have been the principle reasons for this phenomenal progress? What do these results augur for the coming decades?
The pace of human development has increased dramatically and is still accelerating: It took the United Kingdom 58 years, beginning into double its output per capita. The United States did it in 47 years, beginning in Japan accomplished the feat in only 24 years, beginning in the s.
More remarkably, China has doubled in the past 10 years and is on course to double again in the next eight. During the period from toreal per capita standards of living based on purchasing power parity multiplied twelve-fold in South Korea, seven-fold in Japan, more than six-fold in Egypt and Portugal, and well above five-fold in Indonesia and Thailand.
These countries have demonstrated beyond doubt that much higher rates of growth are achievable than at any time in the past.
What are the factors that make possible and limit this accelerated progress? What implications does it have for nations just entering the take-off stage? The rate of growth differs widely among nations and communities and the differences appear to be widening: Between andper capita GDP rose by 5.
Yet despite extensive efforts to draw lessons from the impressive achievements of the Asian Tigers, no formula has emerged that is generally applicable to countries faced with differing conditions and at different stages of development.
What factors account for the vast differences in performance? What valid principles can be derived from the disparities in performance?The RailRiders won their third straight division title in (Times Leader) Once upon a time the Yankees had a middling — if not miserable — farm system that failed year after year to.
When people select alternatives, they avoid loss and optimize for sure wins because the pain of losing is greater than the satisfaction of an equivalent gain. UX designs should frame decisions accordingly. The Trump administration's treatment of migrant children as potential criminals has meant lengthy incarcerations for thousands—and an unwelcome shift in mission for .
Prospect Theory. An Analysis of Decision Making Under Risk. [Daniel Kahneman] on benjaminpohle.com *FREE* shipping on qualifying offers. Theory of Development. by Garry Jacobs, Robert Macfarlane, and N.
Asokan [presented to Pacific Rim Economic Conference, Bangkok, Jan , ]. Prospect theory suggests that losses hit us harder.
There is a greater emotional impact associated with a loss than with an equivalent gain. As an example, consider how you may react to the.