Finance is the most widely applied field of prospect theory in economics. The research in this field applies prospect theory in three main cases: 1) the average return of cross section, the purpose of which is to understand why some financial assets have a higher average return rate than others; 2) the overall stock market; 3) traded financial assets [13] .


In the area of insurance economics, prospect theory of risk attitudes plays a key role. So it is also a prospect theory and effective application fields. The most important consumers in the insurance market is property insurance and insurance against death (main product is life insurance and annuity), and health care. So far, the prospect theory is used to explain the first two of three markets [14] .

Consumption and savings decisions

Kőszegi and Rabin (2009) a prospect theory is put forward in the perspective into a dynamic model of consumer choice. Early model based on the author’s ideas, when expectations are an important reference point, at each time t, personal utility from two sources: 1) from the actual consumption at time t and the man was recently expected consumption and 2) the difference between a personal current consumption in each date in the future and the difference between this person recently is expected [15] .

Industrial enterprise

When consumers have preferences of prospect theory, the company may adopt corresponding pricing strategy. Such as Heidhues and Kőszegi (2014) considering the neutral monopoly for consumers with loss aversion in thoughts and money on the two dimensions of selling goods [16] .

Labor supply

Prospect theory may help to understand certain aspects of wage labor supply to reflect. The study of this subject is mainly concentrated in the taxi driver’s labor supply. It may seem odd to focus on a narrow job market, but there is a reason. Labor supply models usually assume that workers can choose working time and quantity. Driving a taxi is a real professional [17] .


Pasquariello and Paolo studied equilibrium trading strategies and market quality in an economy in which speculators display preferences consistent with Prospect Theory [18] .