Prospect Theory

From Never Split the Difference by Chris Voss — Chapter 6

The Framework

People's decisions under risk follow two asymmetric principles:

• Certainty Effect: A 100% chance of $9,499 > a 95% chance of $10,000, even though the expected value is lower.


• Loss Aversion:...

How It Works

Prospect Theory provides a structured approach to understanding Accusation Audit as Emotional Anchor, Anchor and Adjustment, Associative Coherence as presented in Chapter 6 of Never Split the Difference.

Related Concepts

Concepts explored in the same chapter:

• Accusation Audit as Emotional Anchor
• Anchor and Adjustment
• Associative Coherence
• Bolstering Range
• Certainty Effect
• Face-Saving
• Framing Effects
• Loss Aversion

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📚 From Never Split the Difference by Chris Voss