On the potential for observational equivalence in experiments on risky choice when a power value function is assumed
نویسندگان
چکیده
We demonstrate theoretically and illustrate the implications of assuming power utility when the true function is of the expo-power form. Empirical results can appear to be consistent with cumulative prospect theory when they are in fact generated from a Markowitz model. Crown Copyright© 2011 Published by Elsevier B.V. All rights reserved.
منابع مشابه
Application of Case I and Case II of Hill’s 1979 Yield Criterion to Predict FLD
Forming limit diagrams (FLDs) are calculated based on both the Marciniak and Kuczynski (M-K) model and the analysis proposed by Jones and Gillis (J-G). J-G analysis consisted of plastic deformation approximation by three deformation phases. These phases consisted of homogeneous deformation up to the maximum load (Phase I), deformation localization under constant load (phase II) and local necki...
متن کاملSome Issues in Implementation of a Voltage Stability Analysis Function in an Energy Management System Environment
Over the last few years, the problem of voltage stability has received a lot of attraction from the power system community. This type of stability is now a major concern for utilities in both planning and operating conditions. Both static and dynamic aspects of the problem have been discussed and investigated by the researchers. The present paper concentrates on a Voltage Stability Analysis fun...
متن کاملThe hazards of pedestrian mobile-phone use when crossing signalized intersections, Iran (2017); an observational study
Background: Distracted walking is a major cause of pedestrian fatalities. Along with the expansion and popularity of mobile phones, their impacts on pedestrian safety, especially when crossing urban intersections have attracted a lot of attention. The purpose of this study is to evaluate the effects of mobile-phone use on pedestrians’ crossing behavior when passing signalized intersections. Ma...
متن کاملRunning head: FORM AND CONTENT IN RISKY CHOICE 1 When Payoffs Look Like Probabilities: Separating Form and Content in Risky Choice
Paralleling research in perception, behavioral models of risky choice posit “psychophysical” transformations of material outcomes and probabilities. Prospect theory assumes a value function that is concave for gains and convex for losses, and an inverse S-shaped probability weighting function. But in typical experiments, form and content are confounded: Probabilities are represented on a bounde...
متن کاملOne-Dimensional Transient Thermal and Mechanical Stresses in FGM Hollow Cylinder with Piezoelectric Layers
In this paper, an analytical method is developed to obtain the solution for the one dimensional transient thermal and mechanical stresses in a hollow cylinder made of functionally graded material (FGM) and piezoelectric layers. The FGM properties are assumed to depend on the variable r and they are expressed as power functions of r but the Poisson’s ratio is assumed to be constant. Transient te...
متن کامل