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Decision making generalized by a cumulative probability weighting function

Physica A: Statistical Mechanics and its Applications, 2018
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
dos Santos, Lindomar Soares   +2 more
openaire   +3 more sources

Parameter-Free Elicitation of Utility and Probability Weighting Functions

Management Science, 2000
This paper proposes a two-step method to successively elicit utility functions and decision weights under rank-dependent expected utility theory and its “more descriptive” version: cumulative prospect theory. The novelty of the method is that it is parameter-free, and thus elicits the whole individual preference functional without imposing any prior ...
Mohammed Abdellaoui
openaire   +3 more sources

On the Source and Instability of Probability Weighting

Social Science Research Network, 2023
We propose and experimentally test a new theory of probability distortions in risky choice. The theory is based on a core principle from neuroscience called efficient coding, which states that perception is more accurate for those stimuli that the agent ...
Cary Frydman, Lawrence J. Jin
semanticscholar   +1 more source

A cognitive‐emotional account of the shape of the probability weighting function

Journal of Behavioral Decision Making, 2002
E. Brandstätter   +2 more
semanticscholar   +3 more sources

Instability of inverse probability weighting methods and a remedy for nonignorable missing data

Biometrics, 2023
Inverse probability weighting (IPW) methods are commonly used to analyze nonignorable missing data (NIMD) under the assumption of a logistic model for the missingness probability.
Pengfei Li, J. Qin, Yukun Liu
semanticscholar   +1 more source

Probability Weighting in Interactive Decisions: Evidence for Overuse of Bad Assistance, Underuse of Good Assistance

International Conference on Human Factors in Computing Systems, 2022
The effective use of assistive interfaces (i.e. those that offer suggestions or reform the user’s input to match inferred intentions) depends on users making good decisions about whether and when to engage or ignore assistive features.
A. Cockburn   +4 more
semanticscholar   +1 more source

Probability Weighting Functions Implied in Options Prices

SSRN Electronic Journal, 2012
The empirical pricing kernels estimated from index options are non-monotone (Rosenberg and Engle, 2002; Bakshi, Madan, and Panayotov, 2010) and the corresponding risk aversion functions can be negative (Ait-Sahalia and Lo, 2000; and Jackwerth, 2000).
Valery Polkovnichenko, Feng Zhao
openaire   +1 more source

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