Lewandowski, Michal (2006): Is Cumulative Prospect Theory a Serious Alternative for the Expected Utility Paradigm?

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Abstract
The purpose of this paper is to demonstrate that Cumulative Prospect Theory is a serious alternative for Expected Utility Theory. It does not contradict Expected Utility, but includes it as a special example. A very useful example, because simple and yet very flexible, Expected Utility proved indispensable in many areas of economic analysis. Though a special example, because it does not capture some important effects observed in real choice behavior.
Item Type:  MPRA Paper 

Original Title:  Is Cumulative Prospect Theory a Serious Alternative for the Expected Utility Paradigm? 
Language:  English 
Keywords:  Cumulative Prospect Theory, CPT, Expected Utility Theory, prospect stochastic dominance 
Subjects:  D  Microeconomics > D0  General > D03  Behavioral Microeconomics: Underlying Principles D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty C  Mathematical and Quantitative Methods > C9  Design of Experiments > C91  Laboratory, Individual Behavior 
Item ID:  43271 
Depositing User:  Michal Lewandowski 
Date Deposited:  14 Dec 2012 14:04 
Last Modified:  01 Oct 2019 17:19 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/43271 