dependent expected utility; Prospect theory; Prelec and higher order Prelec probability weighting functions. JEL Classification … high probabilities. A number of probability weighting functions have been proposed that embody this feature; we discuss … the Becker paradox. Section 5 is on probability weighting functions, which are critical to the explanation of the Becker …

dependent utility (RDU) and cumulative prospect theory (CP), use probability weighting functions. Existing probability weighting … is contrary to the evidence. Second, we introduce a new class of probability weighting functions, which we call higher … order Prelec probability weighting functions, that incorporate (i) and (ii). Third, we show that if RDU or CP are combined …