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What Are the Main Assumptions of Prospect Theory and How

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What are the main assumptions of prospect theory and how well does it explain foreign policy decision making?


Definitions:

Specialized Cognitive Mechanisms

Brain functions or structures evolved to solve specific problems of survival or reproduction.

Evolutionary Perspective

An approach in psychology that explains mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Inferential Heuristics

Mental shortcuts that allow individuals to make judgments and solve problems quickly but can sometimes lead to errors in reasoning.

Conjunction Fallacy

A logical error where individuals mistakenly believe that specific conditions are more probable than a single general one.

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