Primate anterior insular cortex represents economic decision variables proposed by prospect theory [PDF]
Nature Communications, 2022 Prospect theory predicts irrational effects in human decision-making, but relies on ad-hoc assumptions. Here, authors provide a neural basis for this by showing that anterior insular cortex encodes key economic variables proposed by prospect theory.
You-Ping Yang, Xinjian Li, Veit Stuphorn
doaj +2 more sources
Composite Prospect Theory: A proposal to combine ‘prospect theory’ and ‘cumulative prospect theory’ [PDF]
, 2010 Evidence shows that (i) people overweight low probabilities and underweight high probabilities, but (ii) ignore events of extremely low probability and treat extremely high probability events as certain. The main alternative decision theories, rank dependent utility (RDU) and cumulative prospect theory (CP) incorporate (i) but not (ii).
Ali al-Nowaihi, Sanjit Dhami
openaire +2 more sources
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
Endogenous Prospect Theory [PDF]
, 2010 In previous models of (cumulative) prospect theory reference-dependence of preferences is imposed beforehand and the location of the reference point is exogenously determined. This paper provides an axiomatization of a new specification of cumulative prospect theory, termed endogenous prospect theory, where reference-dependence is derived from ...
Schmidt, Ulrich, Zank, Horst
core +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
doaj +1 more source
Separating response variability from structural inconsistency to test models of risky decision making [PDF]
Judgment and Decision Making, 2012 Individual true and error theory assumes that responses by the same person to the same choice problem within a block of trials are based on the same true preferences but may show preference reversals due to random error.
Michael H. Birnbaum, Jeffrey P. Bahra
doaj +2 more sources
Narcissism, risk and uncertainties: analysis in the light of prospect and fuzzy-trace theories [PDF]
RAUSP Management Journal, 2021 Purpose – This study aims to analyze the relationship between the nonpathological traits of narcissism and decisions under conditions of uncertainty and risk in light of the prospect (PT) and fuzzy-trace theories (FTT). Design/methodology/approach – This
Márcia Figueredo D’Souza +1 more
doaj +1 more source
Safety state evaluation method of the highway tunnel structure
Heliyon, 2023 This study proposes an evaluation method for the structural safety of expressway tunnels utilizing possibility and prospect theories to address the influence of multiple indicators on the structural safety of expressway tunnels and the imprecision of ...
Hailin Liu
doaj +1 more source
The effect of prospect theory value on asset returns on the Borsa Istanbul
Borsa Istanbul Review, 2023 The goal of this study is to test the validity of the prospect theory in the Borsa Istanbul (BIST) over the sample period September 2009 to December 2019.
Ebubekir Mollaahmetoğlu, Erdinç Altay
doaj +1 more source
Digital Characteristics of Microstructure of Diamond—Silicon Carbide Composites
Ceramics, 2023 As an example of the implementation of digital materials science approaches based on statistical processing of electron micrographs with the analysis of fractal parameters, the digital characteristics of microstructure of diamond–silicon carbide ceramic ...
Andrey G. Chekuryaev +3 more
doaj +1 more source