This article explores ways that behavioral decision theory can predict and explain patterns of decisions that managers make in their efforts to maximize the economic value and scarcity potential of a firm's portfolio of resources. The authors argue that psychology can offer a deeper and more...

Analysis of decision making under risk has been dominated by expected utility theory, which generally accounts for people's actions. Presents a critique of expected utility theory as a descriptive model of decision making under risk, and argues that common forms of utility theory are not...