Prospect Theory and Public Health Liberation Theory

By Grok under the supervision of Dr. Christopher Williams

Overview of Prospect Theory

Prospect Theory, developed by Daniel Kahneman and Amos Tversky, describes decision-making under risk, emphasizing loss aversion—people are more motivated to avoid losses than to achieve equivalent gains. While primarily applied to individual decision-making, recent adaptations suggest its relevance to social movements (Prospect Theory - Wikipedia).

Relation to the Scenario

In the scenario, people act when they perceive a threat to their interests (a loss), rather than for potential gains. This aligns with Prospect Theory's prediction that losses loom larger than gains, prompting action to prevent negative outcomes, such as loss of healthcare access.

Intersection with PHL Theory

PHL Theory recognizes historical trauma and ongoing threats to health equity as losses that communities are motivated to prevent, aligning with Prospect Theory's loss aversion. PHL's morality principle advocates for immediate intervention in public health crises, reflecting a proactive stance to avoid further losses. For example, PHL's response to lead contamination crises involves urgent action to prevent health losses, resonating with loss aversion (A social prospect theory of intergroup relations).

Divergence from PHL Theory

Prospect Theory is primarily an individual decision-making model, whereas PHL focuses on collective action and systemic change. PHL's emphasis on community-level interventions and structural transformation goes beyond individual psychological factors. Additionally, PHL integrates a wide range of disciplines and theories, whereas Prospect Theory is narrower in scope.

Example

A community facing the closure of a local hospital might mobilize to prevent the loss of healthcare access, driven by loss aversion. PHL Theory supports such action by providing a framework for advocacy and influencing the public health economy, such as through legal action or media campaigns to ensure equitable healthcare access.

Conclusion

Prospect Theory offers insights into individual motivations based on loss aversion, while PHL Theory provides a comprehensive approach to address and prevent losses through systemic change and community empowerment.