LAUSR

Behavioral premium principles

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0 Published in 2019 at "Decisions in Economics and Finance"

DOI: 10.1007/s10203-019-00246-x

Abstract: We define a premium principle under the continuous cumulative prospect theory which extends the equivalent utility principle. In prospect theory, risk attitude and loss aversion are shaped via a value function, whereas a transformation of… read more here.

Keywords: prospect theory; probability weighting; function; behavioral premium ... See more keywords