Payoff Kinks in Preferences over Lotteries.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 2001
Volume: 23
Issue: 3
Pages: 207-60

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper identifies two distinct types of payoff kinks that can be exhibited by preference functions over monetary lotteries--"locally separable" vs. "locally nonseparable"--and illustrates their relationship to the payoff and probability derivatives of such functions. Expected utility and Frechet differentiable preference functions are found to be incapable of exhibiting locally nonseparable payoff kinks; rank-dependent preference functions are incapable of avoiding them. Copyright 2001 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:23:y:2001:i:3:p:207-60
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25