On the potential for observational equivalence in experiments on risky choice when a power value function is assumed

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 116
Issue: 1
Pages: 8-10

Authors (2)

Peel, D.A. (Lancaster University) Zhang, Jie (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We demonstrate theoretically and illustrate the implications of assuming power utility when the true function is of the expo-power form. Empirical results can appear to be consistent with cumulative prospect theory when they are in fact generated from a Markowitz model.

Technical Details

RePEc Handle
repec:eee:ecolet:v:116:y:2012:i:1:p:8-10
Journal Field
General
Author Count
2
Added to Database
2026-01-28