Courting Risk: A Prospect Theory Analysis of Putin’s Decision to Invade Ukraine

Abstract: On February 24, 2022, Russia launched a full-scale invasion into Ukraine under orders of Vladimir Putin. The invasion subsequently inspired a debate on the rationality behind this decision. The existing academic debate into the decision behind the invasion has identified both external and internal factors which can explain why this specific action may have been taken but has omitted a nuanced answer on clarifying the extent of Putin’s military actions. Prospect theory dictates that people under conditions of risk are more likely to be risk acceptant if they have experienced the context leading up to the decision to be one in which they have experienced losses. This thesis aims to explore how prospect theory can contribute to an understanding of Putin’s decision to invade Ukraine by employing a congruence analysis case-study approach. It concludes that the principles of prospect theory provide a substantiated explanation as to why Putin chose a full-scale invasion into Ukraine, demonstrating that Putin found himself in a domain of losses and opted for the option with the highest outcome uncertainty. Moreover, prospect theory also adds nuance to the existing academic debate by defining rationality as a scale with intervening factors, demonstrating that Putin’s decision-making rationality may have been impacted by his framing of losses.