We present a new theory of decision under risk called third-generation prospect theory. A novel feature of our version … of prospect theory is that, by allowing reference points to be uncertain, it is able to accommodate the phenomenon of …. We find that the standard patterns of preference reversal are predicted for typical parameterisations of prospect theory …

The aim of this paper is to propose a model of decision-making for lotteries. The key element of the theory is the use … account for lottery evaluation. Our contribution explains the major violations of the expected utility theory for decisions on …

market experience shapes behavior, it does not generally promote consistency with standard preference theory. …

the theory. Qualities allow the derivation of optimal decision-making processes and are taken explicitly into account for … lottery evaluation. Our contribution explains the major violations of the expected utility theory for decisions on two …

-based. Because choise is the basic primitive of economics and utility theory, this preference reversal is more fundamental and …

market experience shapes behavior, it does not generally promote consistency with standard preference theory. …

We present a new theory of decision under risk called third-generation prospect theory. A novel feature of our version … of prospect theory is that, by allowing reference points to be uncertain, it is able to accommodate the phenomenon of …. We find that the standard patterns of preference reversal are predicted for typical parameterisations of prospect theory …