Prospect Theory
Abstract
Prospect theory (PT) is one of the most pioneering and well-known theories used to describe and predict consumer decision-making, which is fraught with risk and uncertainty. PT suggests that individuals typically exhibit risk aversion when presented with potential rewards and engage in risk-taking behavior when faced with potential losses. In this section, first, the unique features of PT are emphasized, and then, based on milestone research conducted in the tourism and travel industry sample, the power of the theory to predict and explain consumer behavior is revealed.
Fields of Study & Subjects
Diverse Aspects of Tourism Research
Decision-Making and Behavioral Economics
Cognitive and psychological constructs research
Publication details
- Journal / source
- CABI eBooks
- Publisher
- CABI
- Pages
- 115–122
- Publication date
- 28 January 2026
- Language
- EN
- Document type
- Book chapter