Management Theory Applications of Prospect Theory: Accomplishments, Challenges, and Opportunities

Journal of Management, Forthcoming

66 Pages Posted: 26 Nov 2010

See all articles by R. Michael Holmes

R. Michael Holmes

Florida State University - Department of Management

Philip Bromiley

University of California, Irvine

Cynthia E. Devers

Michigan State University - Eli Broad College of Business and Eli Broad Graduate School of Management

Tim R. Holcomb

Miami University

Jean McGuire

Louisiana State University, Baton Rouge - E.J. Ourso College of Business Administration

Date Written: November 24, 2010

Abstract

We review management research drawing on prospect theory, focusing primarily on studies in strategic management and organizational behavior/human resource management. These studies have made valuable contributions to several prominent research streams. However, they commonly underutilize or misinterpret central arguments from prospect theory. Further, they illustrate that applying prospect theory in organizational settings poses several theoretical and methodological challenges. Thus, we review these studies, critically analyze them, and make suggestions to enrich future work.

Suggested Citation

Holmes, R. Michael and Bromiley, Philip and Devers, Cynthia E. and Holcomb, Tim R. and McGuire, Jean, Management Theory Applications of Prospect Theory: Accomplishments, Challenges, and Opportunities (November 24, 2010). Journal of Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1714797

R. Michael Holmes (Contact Author)

Florida State University - Department of Management ( email )

United States

Philip Bromiley

University of California, Irvine ( email )

Campus Drive
Irvine, CA 62697-3125
United States

Cynthia E. Devers

Michigan State University - Eli Broad College of Business and Eli Broad Graduate School of Management ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Tim R. Holcomb

Miami University ( email )

Farmer School of Business
800 E. High Street, 2075 FSB / MSC1148
Oxford, OH Ohio 45056
United States
5135293665 (Phone)

HOME PAGE: http://fsb.miamioh.edu/

Jean McGuire

Louisiana State University, Baton Rouge - E.J. Ourso College of Business Administration ( email )

Baton Rouge, LA 70803-6308
United States

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