Risk and uncertainty classical and modern models for individual decision making / (1999)
Proefschrift Universiteit Maastricht.
A behavioral definition of loss aversion is proposed and its implications for original and cumulative prospect theory are analyzed. Original prospect theory is in agreement with the new loss aversion...
Geoffroy De Clippel, Hans Peters, Horst Zank
The validity of the axiomatization of the Harsanyi solution for NTU-games by Hart (1985) is shown to depend on the regularity conditions imposed on games. Following this observation, we propose two...
Parametric Weighting Functions
Enrico Diecidue, Ulrich Schmidt, Horst Zank
This paper provides preference foundations for parametric weighting functions under rankdependent utility. This is achieved by decomposing the independence axiom of expected utility into separate...
The present paper combines loss attitudes and linear utility by providing an axiomatic analysis of corresponding preferences in a cumulative prospect theory (CPT) framework. CPT is one of the most...
Risk 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 (Rothshild Stiglitz 1970). Under weaker assumptions than...
A behavioral condition of loss aversion is proposed and tested. Forty-nine students participated in experiments on binary choices among lotteries involving small scale real gains and losses. At the...
Parametric Weighting Functions
Diecidue, Enrico, Schmidt, Ulrich, Zank, Horst
This paper provides behavioral foundations for parametric weighting functions under rankdependent utility. This is achieved by decomposing the independence axiom of expected utility into separate...
A simple model of cumulative prospect theory
The present paper combines loss attitudes and linear utility by providing an axiomatic analysis of cumulative prospect theory (CPT) in the framework for decision under uncertainty. We derive a...
Parametric weighting functions
Diecidue, Enrico, Schmidt, Ulrich, Zank, Horst
This paper provides preference foundations for parametric weighting functions under rank-dependent utility. This is achieved by decomposing the independence axiom of expected utility into separate...