On the Evolutionary Origin of Prospect Theory Preferences

@article{McDermott2008OnTE,
  title={On the Evolutionary Origin of Prospect Theory Preferences},
  author={Rose McDermott and James H. Fowler and Oleg Smirnov},
  journal={The Journal of Politics},
  year={2008},
  volume={70},
  pages={335 - 350}
}
Prospect theory scholars have identified important human decision-making biases, but they have been conspicuously silent on the question of the origin of these biases. Here we create a model that shows preferences consistent with prospect theory may have an origin in evolutionary psychology. Specifically, we derive a model from risk-sensitive optimal foraging theory to generate an explanation for the origin and function of context-dependent risk aversion and risk-seeking behavior. Although this… 

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