It is funny since the Prospect Theory by Amos Tvesky and David Kahnemann no major seminal paper has been made in my opinion in the field of Behavioral Finance/Economics. Although much improvements have been made to the original theory, including the Cumulative Prospect Theory by both of these scholars no other magic bullet has been found to propel behavioral economics further
What's being studied by Behavioral Economics scholars is a very important topic in economics and finance that of human behavior given some wealth, income or even financial and to some extent insurance risk. Here we are talking about the development of human utility.
If this interesting area of research is propelled way forward, a lot of what we know and practice will change, especially in academic economics. This is because the models used in the major areas of macro and microeconomics including, growth, development, consumption, investment and saving is premised on key assumptions about utility.
Therefore if a seminal work is produced in Behavioral Economics, the consequences would be akin to a revolution. Therefore the race is on to find that great ingredient. This is because the consensus is that the area of Behavioral Economics is not yet done but just beginning.
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