Cumulative Prospect Theory for Parametric and Multiattribute Utilities

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Cumulative Prospect Theory for Parametric and Multiattribute Utilities

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It is well-known that if the parties in a legal dispute agree about the likelihood of potential trial outcomes then they will be inclined to settle vs. going to trial in order to reduce litigation costs and risk. In this paper, we assume that both plaintiff and defendant evaluate this decision in accordance with Cumulative Prospect Theory. It is found that the two parties will sometimes be unab...

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ژورنال

عنوان ژورنال: Mathematics of Operations Research

سال: 2001

ISSN: 0364-765X,1526-5471

DOI: 10.1287/moor.26.1.67.10598