Kaivanto, Kim - 2007 - This version: January 17, 2007
Two recently published studies argue that conventional parameterizations of cumulative prospect theory (CPT) fail to … resolve the St. Petersburg Paradox. Yet as a descriptive theory CPT is not intended to account for the local … representativeness effect, which is known to induce 'alternation bias' on binary iid sequences such as those generated by coin tossing in …