Monday, February 10, 2014

The first JPE citation of prospect theory didn't happen until 2005

Kahneman and Tversky’s (1979) Prospect Theory (.pdf), with its 9,206 citations, is the most cited article in Econometrica, the prestigious journal in which it appeared. In fact, it is more cited than any article published in any economics journal. ...

The Journal of Political Economy is considered a top-4 journal in economics. It has, nevertheless, a well known bias towards evidence consistent with rationality (ironic for rationality requires the unbiased evaluation of evidence). No JPE paper cited Prospect Theory until 2005… a 26 years lag. The authors could have been born the year Prospect Theory was published! The AER first cited it in 1982. In econ time that translates into immediately.
--Uri Simonsohn, Data Colada, on tribalism in economics