consequence, for the multiplier derivatives. Keywords: Sensitivity, optimal value function, shadow price, Karush-Kuhn- Tucker … ddtλ(t). For this purpose one could first introduce the optimal value function v(t) := optx{f(x,t) : h(x,t) = 0}; second … that x(t) is a local minimizer of P(t) for t close to ¯t. Hence the (local) optimal value function of P(t) is v(t) = f …

-shaped value function recently advocated by Levy and Levy (2002a), in favor of the S-shaped form. In addition, we find generally … Prospect Theory. In the experimental part of the working paper we offer a test of several joint hypotheses on the value … function and the probability weighting function. Assuming empirically relevant weighting functions, we can reject the inverse S …

satisfaction on relative income can be related to the reference dependence of the value function in Kahneman and Tversky's (1979 …) prospect theory. In this paper we investigate whether the characteristics of the value function like concavity for gains …

one and when it equals one.We show that the value function and the policy function are continuous with respect both to the …

average results, we found that participants behave as the S-shape value function predicts. However, breaking the data down on …% of the participants behave as the S-shape value function predicts. The percentage decreases to 16% when the stakes were …. In this case, 37% of the participants behaved consistently with the S-shape value function. In the third experiment, we …