Parametric weighting functions

A-Tier
Journal: Journal of Economic Theory
Year: 2009
Volume: 144
Issue: 3
Pages: 1102-1118

Authors (3)

Diecidue, Enrico (not in RePEc) Schmidt, Ulrich (Christian-Albrechts-Universitä...) Zank, Horst (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

This paper provides preference foundations for parametric weighting functions under rank-dependent utility. This is achieved by decomposing the independence axiom of expected utility into separate meaningful properties. These conditions allow us to characterize rank-dependent utility with power and exponential weighting functions. Moreover, by allowing probabilistic risk attitudes to vary within the probability interval, a preference foundation for rank-dependent utility with parametric inverse-S shaped weighting function is obtained.

Technical Details

RePEc Handle
repec:eee:jetheo:v:144:y:2009:i:3:p:1102-1118
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29