an extended prospect-theory framework that accounts for both the distinction between gains and losses with respect to a …

time take-up insurance for moderate risks at highly loaded premiums. This paper explores whether prospect theory, in … theory to insurance problems is the choice of the reference point. We motivate and explore two possible reference points …

Theory and he does not know exactly the stochastic process generating earnings. While the earnings are generated by a random … evaluates the asset according to Prospect Theory consistently underestimates the asset, due to loss aversion bias. This is shown …

-dependence, loss aversion and diminishing sensitivity - aspects emphasized in prospect theory - to social welfare measurement. We …

help explain several anomalies associated with prospect theory, including probability weighting, loss aversion, and framing …. Prospect theory's four-fold pattern of probability weighting predicts that decision makers favor long-shots, avoid near sure … those of prospect theory, they differ in some cases, allowing for tests between the theories. The theoretical predictions …

We demonstrate that in simple 2 X 2 games (cumulative) prospect theory preferences can be evolutionarily stable, i.e. a … population of players with prospect theory preferences can not be invaded by more rational players. This holds also if …