Harin, Alexander
(2015):
*“Luce problem” and discontinuity of Prelec’s function at p = 1.*

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## Abstract

This short paper is devoted to two items: 1) An analysis of Prelec’s weighting function at the probability p = 1 is highlighted (this analysis was performed by R. Duncan Luce in two articles with Ragnar Steingrimsson and János Aczél and here is referred to as the “Luce problem”). 2) The question of possible discontinuity of Prelec’s weighting function at p = 1 is specially considered, as a manifestation of importance of the “Luce problem.”

Item Type: | MPRA Paper |
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Original Title: | “Luce problem” and discontinuity of Prelec’s function at p = 1 |

Language: | English |

Keywords: | Luce, Prelec; utility; prospect theory; 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 D - Microeconomics > D8 - Information, Knowledge, and Uncertainty D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty |

Item ID: | 63672 |

Depositing User: | Alexander Harin |

Date Deposited: | 15 Apr 2015 19:59 |

Last Modified: | 27 Sep 2019 04:03 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/63672 |