Use Artificial Intelligence to implement the Prospect Theory of Daniel Kahneman: Shaping the Understanding of Economic Decision-Making with Large Language Models
Kahneman’s groundbreaking contributions to “prospect theory” highlighted the limitations of the expected utility theory, underscoring the significance of psychological biases in economic decision-making. This theory marked a significant departure from the assumption that individuals act purely on rational calculations, acknowledging instead the influence of various biases and heuristics. The human brain is a multifaceted mosaic, with each piece affecting our decision-making processes. Consequently, the images I have generated, inspired by Picasso’s style, reflect this complexity. Picasso was a trailblazer in depicting the multifaceted nature of the human mind. How do we make decisions? The recent passing of Daniel Kahneman at age 90 marks the end of an era for behavioural science but also solidifies a legacy that will persist through the…