Search Results - subject:"Probability weighting"

Zank, Horst; Schmidt, Ulrich; Diecidue, Enrico - 2007

This paper provides behavioral foundations for parametric weighting functions under rankdependent utility. This is achieved by decomposing the independence axiom of expected utility into separate meaningful properties. These conditions allow us to characterize rank-dependent utility with power...

Persistent link: https://www.econbiz.de/10010296267

Assessing the bias due to non-coverage of residential movers in the German microcensus panel: an evaluation using data from the socio-economic panel

Rendtel, Ulrich; Basic, Edin - 2007

The German Microcensus (MC) is a large scale rotating panel survey over three years. The MC is attractive for longitudinal analysis over the entire participation duration because of the mandatory participation and the very high case numbers (about 200 thousand respondents). However, as a...

Persistent link: https://www.econbiz.de/10010299117

Insights into Trader Behavior: Risk Aversion and Probability Weighting

Mattos, Fabio; Garcia, Philip; Pennings, Joost M.E. - 2007

risk aversionparameters and the degree of probability weighting can lead to distinct behavior even if theshapes of utility …

Persistent link: https://www.econbiz.de/10009443335

How to solve the St Petersburg Paradox in Rank-Dependent Models ?

Pfiffelmann, Marie - Laboratoire de Recherche en Gestion (LaRGE), Institut … - 2007

should be finite. 2) To account for the fourfold pattern of risk attitudes, the probability weighting should be strong enough …

Persistent link: https://www.econbiz.de/10005509732

Insights into Trader Behavior: Risk Aversion and Probability Weighting

Mattos, Fabio; Garcia, Philip; Pennings, Joost M.E. - Department of Agricultural and Consumer Economics, … - 2007

risk aversion parameters and the degree of probability weighting can lead to distinct behavior even if the shapes of …

Persistent link: https://www.econbiz.de/10005513405

Parametric Weighting Functions

Zank, Horst; Schmidt, Ulrich; Diecidue, Enrico - Institut für Volkswirtschaftslehre, … - 2007

Persistent link: https://www.econbiz.de/10005082875

A shocking experiment: New evidence on probability weighting and common ratio violations

Berns, Gregory S.; Capra, C. Monica; Moore, Sara; … - In: Judgment and Decision Making 2 (2007) August, pp. 234-242

We study whether probability weighting is observed when individuals are presented with a series of choices between … are widespread. Our results provide evidence that probability weighting is a general phenomenon, independent of the source … lotteries consisting of real non-monetary adverse outcomes, electric shocks. Our estimation of the parameters of the probability …

Persistent link: https://www.econbiz.de/10005773118

Prospect Theory for Continuous Distributions Games and Prospects

Rieger, Marc Oliver; Wang, Mei - 2007

We extend the original form of Prospect Theory by Kahneman and Tversky from finite lotteries to arbitrary probability distributions, thus paving the way for applications in economics and finance. Moreover, we suggest a method how to incorporate a crucial step of the “editing phase” into...

Persistent link: https://www.econbiz.de/10005816514

Assessing the bias due to non-coverage of residential movers in the German microcensus panel: an evaluation using data from the socio-economic panel

Rendtel, Ulrich; Basic, Edin - Fachbereich Wirtschaftswissenschaft, Freie Universität … - 2007

Persistent link: https://www.econbiz.de/10008533663

Non-Monotonicity of the Tversky-Kahneman Probability-Weighting Function: A Cautionary Note

Ingersoll, Jonathan - School of Management, Yale University - 2007

proposed probability weighting function can be negative for some parameter values. This could lead to evaluations that chose …

Persistent link: https://www.econbiz.de/10008853008