Risk Aversion in Cumulative Prospect Theory [PDF]
Management Science, 2008 This paper characterizes the conditions for strong risk aversion and second-order stochastic dominance for cumulative prospect theory. Strong risk aversion implies a convex weighting function for gains and a concave one for losses. It does not necessarily imply a concave utility function.
Horst Zank
exaly +5 more sources
Evolutionary game model based on cumulative prospect theory for information management mechanism in SIoT [PDF]
Heliyon, 2023 As nodes in Social Internet of Things (SIoT) become more intelligent, malicious information occurs more frequently and spreads more widely. This problem can severely affect the trustworthiness of services and applications in SIoT.
Shuting Liu, Yinghua Ma, Xiuzhen Chen
doaj +2 more sources
Cumulative Prospect Theory for Parametric and Multiattribute Utilities [PDF]
Mathematics of Operations Research, 2001 Different attitudes towards gains and losses are a prominent feature of cumulative prospect theory for decision under uncertainty. In particular, decision weights for uncertain events can depend on whether the events involve gains or losses, and the shape of the utility function can reveal loss aversion.
Horst Zank
exaly +4 more sources
An Extended FMEA Model Based on Cumulative Prospect Theory and Type-2 Intuitionistic Fuzzy VIKOR for the Railway Train Risk Prioritization [PDF]
Entropy, 2020 This paper aims toward the improvement of the limitations of traditional failure mode and effect analysis (FMEA) and examines the crucial failure modes and components for railway train operation.
Yong Fu +4 more
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Behavioral weather insurance: Applying cumulative prospect theory to agricultural insurance design under narrow framing. [PDF]
PLoS ONE, 2020 Experience across many countries shows that, without large premium subsidies, crop insurance uptake rates are generally low. In this article, we propose to use the cumulative prospect theory to design weather insurance products for situations in which ...
Tobias Dalhaus +2 more
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Cumulative Prospect Theory Portfolio Selection [PDF]
SSRN Electronic Journal, 2020 We introduce elements of Cumulative Prospect Theory into the portfolio selection problem and then compare stock portfolios selected under the behavioral approach with those selected according to classical approaches, such as Mean Variance and Mean Absolute Deviation ones.
Diana Barro +2 more
openaire +4 more sources
Decision-making of construction workers' waste reduction behavior: a study based on Cost-Benefit Theory and Cumulative Prospect Theory [PDF]
Frontiers in PsychologyThe rapid advancement of industrialization and urbanization has led to a significant generation of construction waste, causing serious resource wastage and environmental pollution. To promote the sustainable development of the construction industry, this
Shuitai Xu +7 more
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Financial market equilibria with cumulative prospect theory [PDF]
Journal of Mathematical Economics, 2009 The paper first shows that financial market equilibria need not to exist if agents possess cumulative prospect theory preferences with piecewise-power value functions. This is due to the boundary behavior of the cumulative prospect theory value function, which might cause an infinite short-selling problem.
De Giorgi, Enrico +2 more
openaire +6 more sources
Explaining Managerial Incentives for Earnings Manipulation Using Cumulative Prospect Theory (Case Study: Companies Listed in Tehran Stock Exchange) [PDF]
مطالعات تجربی حسابداری مالی, 2021 Prospect theory explains how individuals’ feelings and preferences influence their decision-making. The purpose of this research was to investigate earnings manipulation incentives within companies listed in Tehran Stock Exchange using fourfold pattern ...
Fahime Ebrahimi +2 more
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Tests of Cumulative Prospect Theory with graphical displays of probability [PDF]
Judgment and Decision Making, 2008 Recent research reported evidence that contradicts cumulative prospect theory and the priority heuristic. The same body of research also violates two editing principles of original prospect theory: cancellation (the principle that people delete any ...
Michael H. Birnbaum +2 more
doaj +2 more sources