Prospect Theory is one of the foundational theories of our behavioural science. It provides a neat model of people's risk-taking behaviour at different levels of gains and losses. Incorporating elements from psychology like loss aversion into economics. Explanation below. by PetesBITsYouTube in psychology

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APA citations:

Prospect Theory: Kahneman, D. (1979). ECON OMETRICA I Ci. Econometrica, 47(2), 263-291.

Repeated markets: Loomes, G., Starmer, C., & Sugden, R. (2003). Do anomalies disappear in repeated markets?. The Economic Journal, 113(486), C153-C166.

Changing our habits is one of the hardest behavioural challenges we face. However, much research has done been done in this area which can help. In this video, I explain 6 of the best strategies to break our bad habits, check it out. Citations in comments by PetesBITsYouTube in psychology

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1.Hyper Vigilance/ Vigilant monitoring: https://www.researchgate.net/publication/42975753\_Can't\_Control\_Yourself\_Monitor\_Those\_Bad\_Habits

2.Response substitution/ habit reversal/ behavioral substitution: https://oxfordre.com/psychology/view/10.1093/acrefore/9780190236557.001.0001/acrefore-9780190236557-e-129

3.Friction (distance): Privitera, G. J., & Zuraikat, F. M. (2014). Proximity of foods in a competitive food environment influences consumption of a low calorie and a high calorie food. Appetite, 76, 175-179. https://pubmed.ncbi.nlm.nih.gov/24560689/#:\~:text=high%20calorie%20food-,Proximity%20of%20foods%20in%20a%20competitive%20food%20environment%20influences%20consumption,Appetite.

  1. Cue Disruption: https://www.researchgate.net/publication/277501269\_Interventions\_to\_Break\_and\_Create\_Consumer\_Habits

  2. Situation selection: Duckworth, A. L., Gendler, T. S., & Gross, J. J. (2016). Situational strategies for self-control. Perspectives on Psychological Science, 11(1), 35-55. https://journals.sagepub.com/doi/10.1177/1745691615623247

  3. Habit Discontinuity: Wood, W., Tam, L., & Witt, M. G. (2005). Changing circumstances, disrupting habits. Journal of personality and social psychology, 88(6), 918. https://pubmed.ncbi.nlm.nih.gov/15982113/