An Axiomatization of Cumulative Prospect Theory for Decision under Risk.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1999
Volume: 18
Issue: 2
Pages: 137-45

Authors (2)

Chateauneuf, Alain (not in RePEc) Wakker, Peter (Erasmus Universiteit Rotterdam)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Cumulative prospect theory was introduced by Tversky and Kahneman so as to combine the empirical realism of their original prospect theory with the theoretical advantages of Quiggin's rank-dependent utility. Preference axiomatizations were provided in several papers. All those axiomatizations, however, only consider decision under uncertainty. No axiomatization has been provided as yet for decision under risk, i.e., the case in which given probabilities are transformed. Providing the latter is the purpose of this note. The resulting axiomatization is considerably simpler than that for uncertainty. Copyright 1999 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:18:y:1999:i:2:p:137-45
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25