Harin, Alexander (2014): Problems of utility and prospect theories. A discontinuity of Prelec’s function.

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Abstract
A possibility of the existence of a discontinuity of Prelec’s (probability weighting) function W(p) at the probability p = 1 is discussed. This possibility is supported by the Aczél–Luce question whether Prelec’s weighting function W(p) is equal to 1 at p = 1, by the purely mathematical restrictions and the “certain–uncertain” inconsistency of the random–lottery incentive experiments. The results of the wellknown experiments support this possibility as well.
Item Type:  MPRA Paper 

Original Title:  Problems of utility and prospect theories. A discontinuity of Prelec’s function 
Language:  English 
Keywords:  utility; prospect theory; certainty effect; experiment; Prelec; probability weighting function; 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General C  Mathematical and Quantitative Methods > C9  Design of Experiments C  Mathematical and Quantitative Methods > C9  Design of Experiments > C91  Laboratory, Individual Behavior D  Microeconomics > D8  Information, Knowledge, and Uncertainty D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty 
Item ID:  61027 
Depositing User:  Alexander Harin 
Date Deposited:  31 Dec 2014 00:13 
Last Modified:  01 Oct 2019 05:15 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/61027 