Search Results - subject:"(Cumulative) prospect theory"

An Explanation of Optimal Each-Way Bets based on Non-Expected Utility Theory

Peel, David A.; Law, Davind - In: Journal of Gambling Business and Economics 3 (2009) 2, pp. 15-35

The purpose in this paper is to demonstrate how the non-expected utility models of Markowitz and Kahneman and Tversky can explain why an agent, chooses to bet each way on a horse. We also show that that appeal to moments of return, such as a preference for skewness of return, ceteris paribus, to...

Persistent link: https://www.econbiz.de/10008565803

Qualitative Heuristics For Balancing the Pros and Cons

Bonnefon, Jean-François; Dubois, Didier; Fargier, Hélène - In: Theory and Decision 65 (2008) 1, pp. 71-95

Persistent link: https://www.econbiz.de/10005678355

What impacts the impact of rare events

Erev, Ido; Glozman, Ira; Hertwig, Ralph - In: Journal of Risk and Uncertainty 36 (2008) 2, pp. 153-177

Persistent link: https://www.econbiz.de/10005809673

Prospect theory for continuous distributions

Rieger, Marc; Wang, Mei - In: Journal of Risk and Uncertainty 36 (2008) 1, pp. 83-102

Persistent link: https://www.econbiz.de/10005809710

Risk, uncertainty and discrete choice models

Palma, Andre; Ben-Akiva, Moshe; Brownstone, David; … - In: Marketing Letters 19 (2008) 3, pp. 269-285

Persistent link: https://www.econbiz.de/10005716513

Risk Aversion in Cumulative Prospect Theory

Schmidt, Ulrich; Zank, Horst - In: Management Science 54 (2008) 1, pp. 208-216

prospect theory. Strong risk aversion implies a convex weighting function for gains and a concave one for losses. It does not …This paper characterizes the conditions for strong risk aversion and second-order stochastic dominance for cumulative …

Persistent link: https://www.econbiz.de/10009197747

Stochastic expected utility theory

Blavatskyy, Pavlo - In: Journal of Risk and Uncertainty 34 (2007) 3, pp. 259-286

violations of betweenness. Theory fits the data from ten well-known experimental studies at least as well as cumulative prospect … theory. Copyright Springer Science+Business Media, LLC 2007 …

Persistent link: https://www.econbiz.de/10005678230

Cumulative prospect theory and the St. Petersburg paradox

Rieger, Marc; Wang, Mei - In: Economic Theory 28 (2006) 3, pp. 665-679

We find that in cumulative prospect theory (CPT) with a concave value function in gains, a lottery with finite expected …

Persistent link: https://www.econbiz.de/10005371172

UNTIMELY DEATH, THE VALUE OF CERTAIN LIFETIME AND MACROECONOMIC DYNAMICS

Naor, Ziv - In: Defence and Peace Economics 17 (2006) 4, pp. 343-359

estimate the risk of death by invoking the cumulative-prospect theory (Kahneman and Tversky, 1992). Since the probability of … cumulative-prospect theory governs individuals' behavior, the economy is governed by actual probabilities. The second pillar on …

Persistent link: https://www.econbiz.de/10005639952

Harmonic sequence paradox

Blavatskyy, Pavlo - In: Economic Theory 28 (2006) 1, pp. 221-226

, expected utility theory, cumulative prospect theory) cannot satisfactorily explain this low willingness to pay. The presented …

Persistent link: https://www.econbiz.de/10005753198