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 …

-shaped value function recently advocated by Levy and Levy (2002) in favor of the S-shaped form. In addition, we find generally … cumulative prospect theory. In the experimental part of the 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 …

function. The level set of the value function associated with the indifferent zone is called the "critical" tube. In the … on two components of the phase vector are considered. Such games can have an indifferent zone with constant value …

incorporate preference information in Data Envelopment Analysis (DEA). Generally, a value function includes only ordinal …