Prospect theory is a term coined by psychologists Daniel Kahneman and Amos Tversky to describe how people make decisions under uncertainty. It refers to a model that explains how individuals evaluate potential gains or losses, and how they weigh the likelihood of a given outcome. There are several synonyms for prospect theory, including the psychological decision theory, behavioral economics and behavioral finance. Each of these terms has a slightly different focus, but they all seek to explain how individuals make decisions that are often irrational or unpredictable. Synonyms for prospect theory can also include cognitive biases research and bounded rationality theory, which both explore the ways in which human decision-making differs from the idealized models often used in economics and other fields.