A note on the utility function under prospect theory

C-Tier
Journal: Economics Letters
Year: 2008
Volume: 99
Issue: 2
Pages: 337-339

Authors (3)

al-Nowaihi, Ali (Leicester University) Bradley, Ian (not in RePEc) Dhami, Sanjit (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

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Abstract

We show that preference-homogeneity and loss-aversion are necessary and sufficient for the value function to have the power form with identical powers for gains and losses and for the probability weighting functions for gains and losses to be identical.

Technical Details

RePEc Handle
repec:eee:ecolet:v:99:y:2008:i:2:p:337-339
Journal Field
General
Author Count
3
Added to Database
2026-01-24