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Probability weighting explains Independence Axiom violations of Expected Utility Theory in monkeys [PDF]

open access: greenSSRN Electronic Journal, 2021
AbstractExpected Utility Theory (EUT) provides axioms for maximizing utility in risky choice. The Independence Axiom (IA) is its most demanding axiom: preferences between two options should not change when altering both options equally by mixing them with a common gamble. We tested common consequence (CC) and common ratio (CR) violations of the IA over
Simone Ferrari-Toniolo   +2 more
semanticscholar   +7 more sources

Impact of correlation crises in risk theory: Asymptotics of finite-time ruin probabilities for heavy-tailed claim amounts when some independence and stationarity assumptions are relaxed

open access: closedInsurance: Mathematics and Economics, 2008
In the renewal risk model, several strong hypotheses may be found too restrictive to model accurately the complex evolution of the reserves of an insurance company. In the case where claim sizes are heavy-tailed, we relax independence and stationarity assumptions and extend some asymptotic results on finite-time ruin probabilities, to take into account
Biard, Romain   +2 more
  +7 more sources

On the Empirical Validity of Cumulative Prospect Theory: Experimental Evidence of Rank‐Independent Probability Weighting [PDF]

open access: yesEconometrica, 2019
Cumulative Prospect Theory (CPT), the leading behavioral account of decisionmaking under uncertainty, avoids the dominance violations implicit in Prospect Theory (PT) by assuming that the probability weight applied to a given outcome depends on its ranking.
Charles Sprenger   +2 more
openaire   +5 more sources

Test of the physical significance of Bell non-locality. [PDF]

open access: yesNat Commun
Vieira C, Ramanathan R, Cabello A.
europepmc   +1 more source

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