This paper reports a violation of rank-dependent utility with inverse S-shaped probability weighting for binary gambles. The paper starts with a violation of expected utility theory: one-stage gambles elicit systematically different utilities than theoretically equivalent two-stage gambles. This...

This paper shows that QALYs can be derived from more elementary conditions than thought hitherto in the literature: it suffices to impose risk neutrality for life years in every health state. This derivation of QALYs is appealing because it does not require knowledge of concepts from utility...

Allowing for sign-dependence in discounting substantially improves the description of people’s time preferences. The deviations from constant discounting that we observed were more pronounced for losses than for gains. Our data also suggest that the discount function should be flexible enough...

This paper provides a characterization of QALYs, the most important outcome measure in medical decision making, in the context of a general rank dependent utility model. We show that both for chronic and for nonchronic health states the characterization of QALYs depends on intuitive conditions....