The prospect theory is an economics theory developed by Daniel Kahneman and Amos Tversky in 1979.[1] It challenges the expected utility theory, developed by John von Neumann and Oskar Morgenstern in 1944, and earned Daniel Kahneman the Nobel Memorial Prize in Economics in 2002. It is the founding theory of behavioral economics and of behavioral finance, and constitutes one of the first economic theories built using experimental methods.