Search Results - subject:"Cumulative Prospect theory"

Pricing insurance contracts under Cumulative Prospect Theory

Kaluszka, Marek; Krzeszowiec, Michał - In: Insurance: Mathematics and Economics 50 (2012) 1, pp. 159-166

The aim of this paper is to introduce a premium principle which relies on Cumulative Prospect Theory by Kahneman and …

Persistent link: https://www.econbiz.de/10011046659

On the potential for observational equivalence in experiments on risky choice when a power value function is assumed

Peel, D.A.; Zhang, Jie - In: Economics Letters 116 (2012) 1, pp. 8-10

expo-power form. Empirical results can appear to be consistent with cumulative prospect theory when they are in fact …

Persistent link: https://www.econbiz.de/10010572248

Probability and Risk: Foundations and Economic Implications of Probability-Dependent Risk Preferences

Fehr-Duda, Helga; Epper, Thomas - In: Annual Review of Economics 4 (2012) 1, pp. 567-593

A large body of evidence has documented that risk preferences depend nonlinearly on outcome probabilities. We discuss the foundations and economic consequences of probability-dependent risk preferences and offer a practitioner's guide to understanding and modeling probability dependence. We...

Persistent link: https://www.econbiz.de/10010604253

A cumulative perceived value-based dynamic user equilibrium model considering the travelers' risk evaluation on arrival time

Tian, Li-jun; Huang, Hai-Jun; Gao, Zi-you - In: Networks and spatial economics : a journal of … 12 (2012) 4, pp. 589-608

Persistent link: https://www.econbiz.de/10009711534

Dynamic portfolio choice and asset pricing with narrow framing and probability weighting

De Giorgi, Enrico; Legg, Shane - In: Journal of economic dynamics & control 36 (2012) 7, pp. 951-972

Persistent link: https://www.econbiz.de/10009573428

Loss aversion and perceptional risk aversion

Maggi, Mario Alessandro - 2004

(i.e. computed with the perceived probability weights) in Cumulative Prospect Theory. We show that perceptional risk …

Persistent link: https://www.econbiz.de/10010326089

Continuous Cumulative Prospect Theory and Individual Asset Allocation

Davies, G.B.; Satchell, S.E. - Faculty of Economics, University of Cambridge - 2004

We implement the Cumulative Prospect Theory (CPT) framework (Tversky and Kahneman 1992) into a model of individual …

Persistent link: https://www.econbiz.de/10005647392

The Behavioural Components of Risk Aversion

Davies, G.B.; Satchell, S.E. - Faculty of Economics, University of Cambridge - 2004

The risk premium is affected by loss aversion and probability distortions as well as utility curvature. We introduce two variants - the total risk premium relative to objective expected value, and the subjective risk premium relative to perceived expected value. Approximate solutions for each...

Persistent link: https://www.econbiz.de/10005650507

The Cumulative Prospect Theory and Managerial Decision Making

Tipuric, Darko; Prester, Jasna - In: Zagreb International Review of Economics and Business 7 (2004) 1, pp. 61-80

investigate if the cumulative prospect theory is applicable to managerial decision making and describe some divergent views about …

Persistent link: https://www.econbiz.de/10005808500

Back to the St. Petersburg Paradox?

Blavatskyy, Pavlo - Center for Economic Research and Graduate Education and … - 2004

Conventional parameterizations of cumulative prospect theory do not explain the St. Petersburg paradox. To do so, the …

Persistent link: https://www.econbiz.de/10005146533