A critique of prospect theory and framing with particular reference to consumer decisions

Prospect theory is criticized in this article for being borrowed from psychology without appropriate acknowledgement, for requiring mathematical calculations that are beyond the average person, for not investigating information processing during prospect theory choices, and for lacking application to real‐world decisions—such as important product and service choices made by consumers. Further criticism is leveled at the prospect theory‐derived technique known as “framing,” which is based on one‐sided presentation of information and would be unethical in most consumer behavior situations.