منابع مشابه
Cumulative prospect theory and imprecise risk
Tversky and Kahneman have worked out an appealing model of decision making under uncertainty, involving rankand sign-dependent utilities. This model, cumulative prospect theory (CPT), as well as related models proposed by other authors, has received wide acclaim. Available information and psychological attitude facing ambiguity jointly determine the subjective likelihood values the decision mak...
متن کاملRisk Aversion in Cumulative Prospect Theory
This paper characterizes the conditions for risk aversion in cumulative prospect theory where risk aversion is defined in the strong sense of Rothschild and Stiglitz (1970). Under weaker assumptions than differentiability we show that risk aversion implies convex weighting functions for gains and for losses but not necessarily a concave utility function. Also, we investigate the exact relations...
متن کاملAn Axiomatization of Cumulative Prospect Theory for Decision Under Risk
Cumulative prospect theory was introduced by Tversky and Kahneman so as to combine the empirical realism of their original prospect theory with the theoretical advantages of Quiggin’s rank-dependent utility. Preference axiomatizations were provided in several papers. All those axiomatizations, however, only consider decision under uncertainty. No axiomatization has been provided as yet for deci...
متن کاملProspect Theory
Prospect theory is a descriptive theory of how individuals choose among risky alternatives. The theory challenged the conventional wisdom that economic decision makers are rational expected utility maximizers. We present a number of empirical demonstrations that are inconsistent with the classical theory, expected utility, but can be explained by prospect theory. We then discuss the prospect th...
متن کاملProspect Theory
Prospect theory (Kahneman & Tversky, 1979) predictions were examined in light of ethnocentrism and intergroup conflict. An experiment conducted at the outset of the 2003 invasion of Iraq by the U.S., U. K. and their allies explored American and British participants’ preferences for certain versus uncertain gains and losses concerning Iraqi, American, and British lives. In four conditions, parti...
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ژورنال
عنوان ژورنال: Modern Economy
سال: 2011
ISSN: 2152-7245,2152-7261
DOI: 10.4236/me.2011.24077