Search Results - subject:"probability weighting function"

Zank, Horst; Schmidt, Ulrich; Diecidue, Enrico - Institut für Volkswirtschaftslehre, … - 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/10005082875

Parametric Weighting Functions

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

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

Stochastic Dominance and Cumulative Prospect Theory

Baucells Alibés, Baucells Alibés Manel; Heukamp, … - Fundación BBVA - 2007

function and the probability weighting function. Assuming empirically relevant weighting functions, we can reject the inverse S …

Persistent link: https://www.econbiz.de/10008683579

Feeling the numbers : on the interplay between risk, affect, and numeracy

Petrova, Dafina G.; Pligt, J. van der; Garcia-Retamero, … - In: Journal of behavioral decision making 27 (2014) 3, pp. 191-199

Persistent link: https://www.econbiz.de/10010386578

What determines the shape of the probability weighting function?

Fehr-Duda, Helga; Schürer, Marc; Schubert, Renate - 2006

When valuing risky prospects, people typically overweight small probabilities and underweight medium and large probabilities, but there is vast heterogeneity in individual behavior. We explore the relationship between person-specific probability weights, estimated from investment decisions in a...

Persistent link: https://www.econbiz.de/10003352587

What Determines the Shape of the Probability Weighting Function?

Fehr-Duda, Helga; Schürer, Marc; Schubert, Renate - 2006

Persistent link: https://www.econbiz.de/10011753119

A simple derivation of Prelec’s probability weighting function

Dhami, Sanjit; al-Nowaihi, Ali - Department of Economics, Leicester University - 2005

DEPARTMENT OF ECONOMICS A SIMPLE DERIVATION OF PRELEC’S PROBABILITY WEIGHTING FUNCTION …/20 July 2005 A simple derivation of Prelec’s probability weighting function Ali al-Nowaihi ∗ Sanjit Dhami † June 2005 …’s probability weighting function, Compound invariance, Reduction invariance, Power invariance, Prospect theory, Al- gebraic …

Persistent link: https://www.econbiz.de/10005422702

Insurance and Probability Weighting Functions

Dhami, Sanjit; al-Nowaihi, Ali - Department of Economics, Leicester University - 2005

with our new probability weighting function, then a decision maker will not buy insurance against a loss of sufficiently … incorporate (i) and (ii). Third, we show that if RDU or CP are combined with our new probability weighting function, then a … making under risk; Prelec’s probability weighting function; Higher order Prelec probability weighting functions; Behavioral …

Persistent link: https://www.econbiz.de/10005422703

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

Behavioral biases and the representative agent

Jouini, Elyès; Napp, Clotilde - In: Theory and Decision 73 (2012) 1, pp. 97-123

Persistent link: https://www.econbiz.de/10010865809