capital investment-related decision making and business judgements. He provides a large number of examples that every business …In today’s competitive business environment, an optimal investment strategy is vital for every company. However, it is …

’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment … decreases investment substantially. Theseresults are neither in line with expected utility theory norwith psychologically … orientated theories of decision makingunder risk (e.g. prospect theory or regret theory). We discussthe economic relevance of the …