Original and cumulative prospect theory: a discussion of empirical differences

Authors
  • P.P. Wakker
  • H. Fennema
Publication date 1997
Journal Journal of Behavioral Decision Making
Volume | Issue number 10 | 10
Pages (from-to) 53-64
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract This note discusses differences between prospect theory and cumulative prospect theory. It shows that cumulative prospect theory is not merely a formal correction of some theoretical problems in prospect theory, but it also gives different predictions. Experiments are described that favor cumulative prospect theory.
Document type Article
Published at https://doi.org/10.1002/(SICI)1099-0771(199703)10:1<53::AID-BDM245>3.0.CO;2-1
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