Harin, Alexander (2015): Is Prelec’s function discontinuous at p = 1? (for the Einhorn Award of SJDM).

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Abstract
A possibility of the existence of a discontinuity of Prelec’s (probability weighting) function at the probability p = 1 is discussed. This possibility is supported by the purely mathematical theorems and the “certain–uncertain” inconsistency of the random–lottery incentive experiments. The results of the wellknown experiment support it as well.
Item Type:  MPRA Paper 

Original Title:  Is Prelec’s function discontinuous at p = 1? (for the Einhorn Award of SJDM) 
Language:  English 
Keywords:  Prelec; utility; prospect theory; probability weighting function; Luce; 
Subjects:  C  Mathematical and Quantitative Methods > C0  General C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General C  Mathematical and Quantitative Methods > C8  Data Collection and Data Estimation Methodology ; Computer Programs C  Mathematical and Quantitative Methods > C9  Design of Experiments C  Mathematical and Quantitative Methods > C9  Design of Experiments > C91  Laboratory, Individual Behavior C  Mathematical and Quantitative Methods > C9  Design of Experiments > C93  Field Experiments D  Microeconomics > D0  General > D01  Microeconomic Behavior: Underlying Principles D  Microeconomics > D8  Information, Knowledge, and Uncertainty D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty G  Financial Economics > G0  General > G02  Behavioral Finance: Underlying Principles G  Financial Economics > G1  General Financial Markets > G11  Portfolio Choice ; Investment Decisions 
Item ID:  64672 
Depositing User:  Alexander Harin 
Date Deposited:  28 May 2015 23:16 
Last Modified:  28 Sep 2019 16:50 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/64672 