A revealed reference point for prospect theory
Sign Up to like & getrecommendations! Published in 2019 at "Economic Theory"
DOI: 10.1007/s00199-017-1096-2
Abstract: Without an instrument to identify the reference point, prospect theory includes a degree of freedom that makes the model difficult to falsify. To address this issue, we propose a foundation for prospect theory that advances… read more here.
Keywords: reference; theory; reference point; prospect theory ... See more keywords
Behavioral premium principles
Sign Up to like & getrecommendations! 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
Are employee stock option exercise decisions better explained through the prospect theory?
Sign Up to like & getrecommendations! Published in 2018 at "Annals of Operations Research"
DOI: 10.1007/s10479-016-2127-2
Abstract: In this paper, we introduce a new framework for the analysis of employee stock options exercise decisions. We develop a distorted lattice model where the exercise decision obeys a policy that maximizes the expected value… read more here.
Keywords: exercise; prospect theory; employee stock; exercise decisions ... See more keywords
Buyback and stockout penalty newsvendor model based on reference point prospect theory
Sign Up to like & getrecommendations! Published in 2018 at "Cluster Computing"
DOI: 10.1007/s10586-018-2451-1
Abstract: Expected utility theory is as main analysis of newsvendor problem, which has generally accepted as a normative model of rational choice. However, various independent experimental studies have shown the actual order quantity of decision maker… read more here.
Keywords: order quantity; reference point; theory; prospect theory ... See more keywords
Prospect Theory-Based Consistency Recovery Strategies with Multiplicative Probabilistic Linguistic Preference Relations in Managing Group Decision Making
Sign Up to like & getrecommendations! Published in 2019 at "Arabian Journal for Science and Engineering"
DOI: 10.1007/s13369-019-04053-9
Abstract: Given the inherent characteristics of a practical case, a group decision making (GDM) support model integrated with prospect theory-based consistency recovery strategies based on multiplicative probabilistic linguistic preference information is proposed. Some basic concepts related… read more here.
Keywords: probabilistic linguistic; prospect theory; linguistic preference; consistency ... See more keywords
TODIM Method Based on Cumulative Prospect Theory for Multiple Attributes Group Decision Making Under Probabilistic Hesitant Fuzzy Setting
Sign Up to like & getrecommendations! Published in 2022 at "International Journal of Fuzzy Systems"
DOI: 10.1007/s40815-021-01138-2
Abstract: In the era of uncertain information everywhere, the Probabilistic Hesitant Fuzzy sets (PHFs), utilizing the possible numbers and its possible membership degrees to descript decision-makers’ behavior, has been brought about widespread attention. Scholars from all… read more here.
Keywords: prospect theory; probabilistic hesitant; method; decision making ... See more keywords
An experimental study on cumulative prospect theory learning model of travelers’ dynamic mode choice under uncertainty
Sign Up to like & getrecommendations! Published in 2017 at "International journal of transportation science and technology"
DOI: 10.1016/j.ijtst.2017.07.002
Abstract: Abstract In this paper, we examined travelers’ dynamic mode choice behavior under travel time variability. We found travelers’ inconsistent risk attitudes through a binary mode choice experiment. Although the results deviated from the traditional utility… read more here.
Keywords: cumulative prospect; prospect theory; mode choice; model ... See more keywords
Site selection of photovoltaic power plants in a value chain based on grey cumulative prospect theory for sustainability: A case study in Northwest China
Sign Up to like & getrecommendations! Published in 2017 at "Journal of Cleaner Production"
DOI: 10.1016/j.jclepro.2017.02.012
Abstract: Installing a photovoltaic (PV) power plant at a proper location has been a critical problem for the system planners and investors. In this study, grey cumulative prospect theory is employed to study the site selection… read more here.
Keywords: power plants; cumulative prospect; site selection; prospect theory ... See more keywords
On prospect theory, making choices for others, and the affective psychology of risk
Sign Up to like & getrecommendations! Published in 2021 at "Journal of Experimental Social Psychology"
DOI: 10.1016/j.jesp.2021.104177
Abstract: Abstract Previous research has generally shown that people’s decisions conform to the four-fold pattern of prospect theory; that is, people over-weight prospects with small probabilities and under-weight prospects with large probabilities. In terms of making… read more here.
Keywords: psychology risk; prospect theory; psychology; affective psychology ... See more keywords
Primate anterior insular cortex represents economic decision variables proposed by prospect theory
Sign Up to like & getrecommendations! Published in 2022 at "Nature Communications"
DOI: 10.1038/s41467-022-28278-9
Abstract: In humans, risk attitude is highly context-dependent, varying with wealth levels or for different potential outcomes, such as gains or losses. These behavioral effects have been modelled using prospect theory, with the key assumption that… read more here.
Keywords: theory; decision; anterior insular; prospect theory ... See more keywords
Using Prospect Theory to Better Understand the Impact of Uncertainty on Real Estate Negotiations
Sign Up to like & getrecommendations! Published in 2019 at "Journal of Real Estate Research"
DOI: 10.1080/10835547.2019.12091521
Abstract: Economic experiments are used to evaluate the impact of uncertainty on negotiations involving the assembly of land for real estate development. Consistent with the tenets of prospect theory, the re... read more here.
Keywords: estate; prospect theory; impact uncertainty; real estate ... See more keywords