Choices, Values and Frames, authored by Daniel kahneman and Amos Tversky

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Choices, Values and Frames, authored by Daniel kahneman and Amos Tversky
In the research paper titled Choices, Values and Frames, authored by Daniel kahneman and Amos Tversky; offers some insightful information on the aspect of making choices and the psychological determinants related to risks of the choices and the consequences perceived.According to the paper, risky choices are made without the knowledge of the consequences that come from making the choice. Reason being that, most of the consequences that relate to the risky choices is determined by unforeseen circumstances. If one makes the choice to go to war with the enemy, there are a lot factors that are unseen and could relate to the perceptions and the objectives of the enemy including their resolve. Gambling with a choice means one has evaluated the gains and the losses that are aligned with probability quotients. In light decisions that are coupled with sure expectations, most people tend to go with these while averting to risk involved with a gamble that has almost the same gains. In reference to a research paper written by Daniel Bernoulli, the tendencies for people to avoid risks decreases with increasing wealth.The outcomes of a choice largely determine the choices that people make contrary to monetary outcomes of their decisions. According to Bernoulli, the subjective values perceived in the risks is a concave functions that relies on the money element. However the psychophysical measurements show that the subjective value is actually a function of the size of the gains which assumes a concave shape. According to the article, when the functions values relative to gains and the losses are perceived together, they form an s-shaped function.Gains are more attractive than the losses and therefore the differences in the steepness of the curves. The losses tend to be steeper while the gains are not relative to aversive elements of making the choices related to the two possible outcomes. The status quo determines the positivity or the negativity of the outcomes of a given choice.
Application of the research
In an example at the workplace most of the choices are framed with the values and the losses that are expected. When making a choice regarding my future at the company, are also informed by the status quo. At the moment the company is offering a comfortable position that has a decent pay and favorable working and limited pressure. This aspects and conditions of the current company and the position alongside the benefits accruing to the position form the status quo that I relate with. When offered another position at a different company, where I may get better pay, less flexible hours and higher pressure but with added benefits such fully sponsored vacations, it may be tempting, but the values attached to the new positions are too risky. At the moment, the current company is relatively small but it is making continuous progress and at the same time I have formed solid relationships with the management and my colleagues. At the same time there higher chances that if the company expands I may take up more responsibilities thereby driving my career forwards.
At the new company, there are leaning curves to...