An Assessment of Prospect Theory in Tourism Decision-Making Research

Prospect theory has been an essential theoretical foundation for behavioral economics, as recognized with the Nobel Prize in economic sciences in 2002. The growing interest in behavioral economics among tourism researchers necessitates a systematic assessment of prospect theory and its application in tourism research to critically examine the current status of tourism decision-making studies. This study therefore clarifies the theoretical background of prospect theory and analyzes 93 published studies to examine how prospect theory has performed in explaining tourism decision-making. The study also evaluates the application of prospect theory in tourism research and provides future research directions with respect to under-researched dimensions, reference points, dynamic decision-making processes, and the logical continuity and systemization of prospect theory.

Automated summary

Prospect theory is a foundational theory in behavioral economics and has received recognition with the Nobel Prize in economic sciences in 2002. Due to the increasing interest in behavioral economics among tourism researchers, there is a need for a systematic assessment of prospect theory and its application in tourism research. This study clarifies the theoretical background of prospect theory, analyzes 93 published studies, evaluates its performance in explaining tourism decision-making, and provides future research directions.