Subjective Probability and Consumer Behavior

The theory of subjective probability was independently and almost simultaneously discovered in 1926 by Frank Ramsey in Cambridge and Bruno de Finetti in Italy and was later developed in an interdisciplinary form by the researchers in the fields of psychology and economics such as Tversky and Kahneman who were awarded the Noble Prize in Economics in 2002 upon presenting his prospect theory in the field of economics. This theory is today used on an applied basis in all fields from medicine and treatment to politics and economics. In this paper, after describing the literature on subjective probability both from mathematical and cognitive views, the relation between this phenomenon and consumer behavior in the marketing field will be explained by using qualitative research method. Our commentary highlights the need for future research to study the relationship between competitors messages and consumers subjective value