Prospect Theory developed by Daniel Kahneman and Amos Tversky as a psychologically more accurate description of decision making, compared to the expected utility theory. Prospect Theory states that people make decisions based on the potential value of losses and gains rather than the final outcome, and that people evaluate these losses and gains using some heuristics. http://prospect-theory.behaviouralfinance.net/
Article from Tren Griffin on 25iq about Annie Duke, author of " Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts " looking at the role of luck and your process of decision making. “There are exactly two things that determine how our lives turn out: the quality of our decisions and luck.” Lessons from Annie Duke