This short paper is devoted to two items: 1) An analysis of Prelec’s weighting function at the probability p = 1 is … referred to as the “Luce problem”). 2) The question of possible discontinuity of Prelec’s weighting function at p = 1 is …

A possibility of the existence of a discontinuity of Prelec’s (probability weighting) function W(p) at the probability … p = 1 is discussed. This possibility is supported by the Aczél–Luce question whether Prelec’s weighting function W(p) is …

. The need supported by the Aczél–Luce question whether Prelec’s weighting function W(p) is equal to 1 at p = 1, by the … results of the experiments of the certainty effect near the certainty show that Prelec’s (probability) weighting function can …

)=1 (whether the Prelec weighting function equals 1 at p=1). A purely mathematical theorem proves W(1)<1. Because of this evident …

dependent expected utility; Prospect theory; Prelec and higher order Prelec probability weighting functions. JEL Classification … probability weighting functions. The first, which include those of Tversky and Kahneman (1992) and Prelec (1998), we call standard …) = w −1 (0) = 0 and w(1) = w −1 (1) = 1. 5.1. Standard probability weighting functions 5.1.1. Prelec’s probability …

order Prelec probability weighting functions, that incorporate (i) and (ii). Third, we show that if RDU or CP are combined … class of probability weighting functions, which we call higher order Prelec probability weighting functions, that … making under risk; Prelec’s probability weighting function; Higher order Prelec probability weighting functions; Behavioral …