Describe Prospect Theory and apply it to explain how you might use it in designing a

pricing strategy for a new, improved product in a range. The product is innovative,

but may be considered risky compared to the previous product. Critically assess the

limitations of applying PT in the real world.

You may answer without specifying the particular product or specify a product of your

choice. Do not include technical details for the product, simply draw on your own

insight$/$imagination for this aspect.