Levy, Haim; Giorgi, Enrico De; Hens, Thorsten - Institut für Volkswirtschaftslehre, …
development of Prospect Theory. Can these two apparently contradictory paradigms coexist? In deriving the CAPM, Sharpe, Lintner … and risk aversion. Kahneman & Tversky suggest Prospect Theory (PT) and Cumulative Prospect Theory (CPT) as an alternative …