) the utility factor with a stochastic version of cumulative prospect theory (logit-CPT), and (b) the attraction factor with …

Cumulative Prospect Theory (PT) introduced the weighting of probabilities as an additional component to capture risk …

Cumulative Prospect Theory has been derived using two-outcome lotteries only, and it is hard to find any evidence in the … using Cumulative Prospect Theory. …This paper discusses two approaches for the analysis of multi-outcome lotteries. The first uses Cumulative Prospect …

theories, rank dependent utility (RDU) and cumulative prospect theory (CP) incorporate (i) but not (ii). By contrast, prospect … prospect theory (CCP). CCP combines the editing and decision phases of PT into one phase and does not allow for the choice of … stochastically dominated options, even when such dominance is obvious. We propose to combine PT and CP into composite cumulative …

cumulative prospect theory that combines prospect theory with cumulative prospect theory. Under plausible conditions CCP is able … prospect theory, the two main alternatives to expected utility. al-Nowaihi and Dhami (2010a) recently propose composite … welfare implications under expected utility. We show that BP also holds under rank dependent expected utility and cumulative …