A questionnaire was administered to 68 software project managers (SPMs). Questions were designed to test whether SPMs’ risky judgments were more consistent with Expected Utility Theory or Prospect Theory. Although the results were more consistent with Prospect Theory, they differed in important ways showing SPMs’ judgments to be less homogeneous than is assumed by either theory. These results highlight the potential importance of SPMs’ judgments to the outcome of software development projects.
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