Tversky and Kahneman (1986) argue that, due to framing and prospect
theory, the rational theory of choice does not provide an adequate foundation
for a descriptive theory of decision making.
Yaari (1987) proposes a modication to expected utility theory and obtains a
so-called `dual theory' of choice under risk. De Bondt and Thaler (1987) report
additional evidence that supports the overreaction hypothesis.
Samuelson and Zeckhauser (1988) perform a series of decision-making experiments
and nd evidence of status quo bias. Poterba and Summers (1988)
investigate transitory components in stock prices and found positive autocorre-