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Prospect theory and tunisian banks' risk taking

By: Contributor(s): Material type: Mixed materialsMixed materialsPublication details: 2012Description: 19-26NLM classification:
  • 332.1
In: ICFAI: JOURNAL OF BEHAVIOR FINANCEMSummary: The aim of this pape is to analyze bank's risk taking from a behavioral perspective. The paper addresses this issue through a special case: risk attitudes based on the prospect theory introduced by Kahneman and Tversky. According to this thoery, agents usually underweigh the probable results compared to certain ones, which implies that agents are risk avere when the gain are certain, and risk seeking when losses are certain.
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The aim of this pape is to analyze bank's risk taking from a behavioral perspective. The paper addresses this issue through a special case: risk attitudes based on the prospect theory introduced by Kahneman and Tversky. According to this thoery, agents usually underweigh the probable results compared to certain ones, which implies that agents are risk avere when the gain are certain, and risk seeking when losses are certain.

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