This paper discusses di€erences between prospect theory and cumulative prospect theory. It shows that cumulative prospect theory is not merely a formal correction of some theoretical problems in prospect theory, but it also gives di€erent predictions. Some experiments by Lola Lopes are re-analyzed, and are demonstrated to favor cumulative prospect theory over prospect theory. It turns out that ...

Models of the evolution of signalling have often failed to consider the role of signal receiver as anything more than that of a passive recipient of signals. This passivity takes three forms. First, receiver's are often modelled as valuing information for its own sake, whereas signallers are taken to place diiering values on receiver response. Second, receivers are often considered to be free f...

Recent literature in the last Maximum Entropy workshop introduced an analogy between cumulative probability distributions and normalized utility functions [1]. Based on this analogy, a utility density function can de defined as the derivative of a normalized utility function. A utility density function is non-negative and integrates to unity. These two properties of a utility density function f...

Decision makers facing a multiple prospect, which is a bundle of single prospects, are influenced by whether outcome information is framed narrowly (segregated) or broadly (aggregated). The present research hypothesizes perceived riskiness and perceived ambiguity as two distinct mediators of the effect of broad versus narrow prospect framing on decision behavior. Perceived riskiness and perceiv...

Original and cumulative prospect theory differ in the composition rule used to combine the probability weighting function and the value function. We test these composition rules by performing a novel test. We apply estimates of prospect theory’s weighting and value function obtained from two-outcome cash equivalents, a domain where original and cumulative prospect theory coincide, to three-outc...

Georg Heinrich,1 J. G. E. Harris,2,3 and Florian Marquardt1 1Arnold Sommerfeld Center for Theoretical Physics, Center for NanoScience and Department of Physics, Ludwig-Maximilians-Universität München, Theresienstr. 37, D-80333 München, Germany 2Department of Physics, Yale University, 217 Prospect Street, New Haven, Connecticut 06520, USA 3Department of Applied Physics, Yale University, 15 Prosp...

Present study was carried out to delineate groundwater prospect zones and identification of artificial recharge sites using Indian remote sensing satellite (IRS) 1D PAN geocoded data on 1:12,500 scale and Survey of India (SOI) topographical sheets. The information based on lithology, geomorphology, soil, land-use/ land-cover, structures/lineament, slope, drainage and hydrology were generated an...