Logo
Munich Personal RePEc Archive

Is Cumulative Prospect Theory a Serious Alternative for the Expected Utility Paradigm?

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

[thumbnail of MPRA_paper_43271.pdf]
Preview
PDF
MPRA_paper_43271.pdf

Download (262kB) | Preview

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.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.