A Novel Probability Weighting Function Model with Empirical Studies
نویسندگان
چکیده
منابع مشابه
Psychophysics of the probability weighting function
A probability weighting function w(p) for an objective probability p in decision under risk plays a pivotal role in Kahneman-Tversky’s prospect theory. Although recent studies in econophysics and neuroeconomics widely utilized probability weighting functions, psychophysical foundations of the probability weighting functions have been unknown. Notably, a behavioral economist Prelec (1998) axioma...
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Since Kahneman and Tversky (1979), it has been generally recognized that decision makers overweight low probabilities and underweight high probabilities. Of the several weighting functions that have been proposed, that of Prelec (1998) has the attractions that it is parsimonious, consistent with much of the available empirical evidence and has an axiomatic foundation. Luce (2001) provided a sim...
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Covariate adjustment in randomized clinical trials has the potential benefit of precision gain. It also has the potential pitfall of reduced objectivity as it opens the possibility of selecting a 'favorable' model that yields strong treatment benefit estimate. Although there is a large volume of statistical literature targeting on the first aspect, realistic solutions to enforce objective infer...
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Understanding the psychological interpretation of numerals is of both practical and theoretical interest. In classical magnitude estimation, respondents match numerals to sensations and in magnitude production they select sensations that stand in a prescribed numerical ratio to a given standard. The present work focusses on evaluating several possible, and related, forms for the function W form...
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Empirical studies have shown that decision makers do not usually treat probabilities linearly. Instead, people tend to overweight small probabilities and underweight large probabilities. One way to model such distortions in decision making under risk is through a probability weighting function. We present a nonparametric estimation procedure for assessing the probability weighting function and ...
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ژورنال
عنوان ژورنال: International Journal of Computational Intelligence Systems
سال: 2020
ISSN: 1875-6883
DOI: 10.2991/ijcis.d.201120.001