Billionaire Mark Cuban is evidence for prospect theory

When Billionaire owner of the Dallas Mavericks Mark Cuban fills up a tank of gas these days it “turns his stomach.” The Associated Press says Cuban’s painful reaction to gas price spikes is attributable to habits from “his working class upbringing.” Here’s another idea: Prospect Theory. A staple of Prospect Theory is that people evaluate outcomes and experience utilities from decisions based on gains and losses instead of absolute wealth. So $.50/gallon spikes in the price of gas can really irritate very rich people.