An Assessment of Prospect Theory in Tourism Decision-Making

★

☆

SHARE

Overview

Paper Summary

Conflicts of Interest

Identified Weaknesses

Rating Explanation

Good to know

Topic Hierarchy

File Information

Paper Summary

Paperzilla title

Tourists Hate Losing (and Maybe Overpaying): A Prospect Theory Deep Dive

Prospect Theory (PT) is increasingly used in tourism research to explain decision-making, but misconceptions and methodological inconsistencies exist. Tourists are particularly sensitive to losses (loss aversion) and reference points heavily influence their choices, suggesting opportunities for targeted marketing strategies and policy interventions.

Possible Conflicts of Interest

None identified

Identified Weaknesses

Limited Generalizability

The paper acknowledges limitations in the generalizability of Prospect Theory (PT) to real-world scenarios, particularly in tourism where utilities are difficult to quantify. This limits the practical application of the findings.

Reliance on Stated Preferences

The reliance on self-reported data (stated preferences) in many of the reviewed studies introduces potential biases and may not accurately reflect actual behavior. This raises concerns about the validity of some conclusions.

Conceptual Ambiguity

The paper identifies confusion between related concepts like loss aversion and risk aversion, as well as the certainty/possibility effect. This highlights a need for greater clarity and precision in applying PT principles.

Under-Researched Areas

Limited research on PT applications in certain tourism sub-sectors (e.g., recreation, food and beverage) and on the supply-side limits the breadth of understanding of decision-making across the tourism industry.

Static Decision-Making Focus

The focus on static decision-making processes, rather than dynamic ones, fails to capture the evolving nature of tourist preferences and decisions over time.

Rating Explanation

This is a comprehensive review that contributes significantly to understanding the application of Prospect Theory in tourism. The systematic methodology, extensive literature analysis, and identification of misconceptions enhance its value. However, the reliance on prior studies with varying quality and the inherent limitations of PT in real-world applications prevent a perfect score.

Good to know

This is our free standard analysis. Paperzilla Pro fact-checks every citation, researches author backgrounds and funding sources, and uses advanced AI reasoning for more thorough insights.

Explore Pro →