LOSS, RISK, AND POLITICAL DECISION-MAKING:ANALYSING MACHIAVELLI’S, THE PRINCE THROUGH PROSPECT THEORY

Abstract

This research studies Niccolò Machiavelli's The Prince using Prospect Theory. The text addresses how leaders make decisions in the face of danger, loss, or the opportunity to learn something new. The premise of this study is that rulers usually want to protect their power and avoid events that could jeopardize their position. Prospect Theory also states that people fear losses more than they value rewards. The goal of this study is to demonstrate why Machiavelli's rulers prioritize avoiding loss over attaining expansion, and how they choose safer paths to safeguard their authority. This study employs a qualitative method, drawing on both primary and secondary sources. The Prince is the major text, with study papers, books, and articles serving as secondary sources. Prospect Theory is the primary framework for understanding rulers' reasoning and decisions. The findings indicate that rulers in The Prince frequently avoid risky behaviours because they consider losing power to be more harmful than missing out on a potential advantage. They strive to maintain stability, remove risks, and make prudent decisions. These findings clearly corroborate Prospect Theory's claim that fear of loss influences human behavior more than desire for gain.