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500 words pleasee!!! Explain how the Prospect Theory explanation of purchase behavior (with respect to prices) differs from...

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Operations Management

500words pleasee!!!


Explain how the Prospect Theory explanation of purchasebehavior (with respect to prices) differs from the conventionaleconomist presentation of buying behavior.

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Consumer ouying behavior has long been of interest to researchers Early economists led by Nicholas Bernoulli John von Neumann and Oskar Morgenstern started to investigate the basis for consumer decisionmaking about 300 years ago This early research approached the topic from an economic viewpoint concentrating exclusively on the purchasing act From this viewpoint the most prevalent model is Utility Theory which recommends consumers to make choices based on the predicted consequences of their decisions Consumers are seen as rational decisionmakers who are concerned only with selfinterest Where utility theory views the consumer as a rational    See Answer
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