Logo
Munich Personal RePEc Archive

Problems of utility and prospect theories. Certainty effect near certainty

Harin, Alexander (2014): Problems of utility and prospect theories. Certainty effect near certainty.

[thumbnail of MPRA_paper_61026.pdf]
Preview
PDF
MPRA_paper_61026.pdf

Download (100kB) | Preview

Abstract

A need for experiments on the certainty effect near the certainty (near the probability p = 1) is stated in this paper. The need 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 experiments of the certainty effect near the certainty show that Prelec’s (probability) weighting function can be discontinuous at the probability p = 1. There is a need for new experiments at probabilities which are closer to p=1, e.g., at probabilities p=.99 and p=.999.

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.