Cumulative Prospect Theory
Composite Prospect Theory: A proposal to combine ‘prospect theory’ and ‘cumulative prospect theory’
... Composite cumulative Prospect theory (CCP) We make the ambitious proposal of combining the psychological richness of PT with the more satisfactory cumulative transformation of probabilities in ...
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Cumulative prospect theory and gambling
... in Cumulative Prospect theory implies that the indifference curve between expected-return and win-probability will exhibit both an asymptote (implying rejection of an infinite-gain bet) and a minimum ...
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Cumulative Prospect Theory and Deferred Annuities
... maximization theory suggests that annuities provide optimal consumption during a retiree’s retirement period, and hence it does not explain why the majority of retirees do not voluntarily convert their DC pension ...
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Risk Aversion in Cumulative Prospect Theory
... 2 Cumulative Prospect Theory and Risk Aversion In this section we recall the general cumulative prospect theory model for decision under ...
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Cumulative Prospect Theory and the St.Petersburg Paradox
... 1.1 Review of Cumulative Prospect Theory (CPT) Expected utility theory has been the foundation for our modern economic the- ories. However, it has been challenged by more and more empirical ...
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Stochastic Dominance and Cumulative Prospect Theory
... The new definitions include, among others, preferences represented by S-shaped value and inverse S-shaped probability weighting functions. The stochastic dominance conditions supply a framework to test different features ...
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Cumulative prospect theory and the St. Petersburg paradox
... of Cumulative Prospect Theory (CPT) Expected utility theory has been the foundation for most of our modern economic theories on uncertainty and ...
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Skewness as an Explanation of Gambling in Cumulative Prospect Theory
... Peel, D., & Law, D. (2009). Skewness as an Explanation of Gambling in Cumulative Prospect Theory. Applied Economics, 41(6), 685-689. https://doi.org/10.1080/00036840601007476 Nutzungsbedingungen: ...
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Cumulative Prospect Theory for Parametric and Multiattribute Utilities
... In cumulative prospect theory models, different behavior concerning gains and losses is per- ...a cumulative prospect theory ...
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Stochastic Models for Assets Allocation under the Framework of Prospect and Cumulative Prospect Theory
... the prospect theory can resolve a number of decision making paradoxes, but the author notes that it is not a ready-made model for economic ...of prospect theory and portfolio optimization ...
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Static Portfolio Choice under Cumulative Prospect Theory
... to Cumulative Prospect ...a Cumulative Prospect Theory investor is highly sensitive to the skewness of the excess return on the risky ...
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Static Portfolio Choice under Cumulative Prospect Theory
... to Cumulative Prospect ...a Cumulative Prospect Theory investor is highly sensitive to the skewness of the excess return on the risky ...
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Static Portfolio Choice under Cumulative Prospect Theory
... to Cumulative Prospect ...a Cumulative Prospect Theory investor is highly sensitive to the skewness of the excess return on the risky ...
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Static Portfolio Choice under Cumulative Prospect Theory
... to Cumulative Prospect ...a Cumulative Prospect Theory investor is highly sensitive to the skewness of the excess return on the risky ...
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Covered call writing in a cumulative prospect theory framework
... apply Cumulative Prospect Theory in its continuous version to the evaluation of the covered call strategy and study the effects of alternative ...
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Loss aversion and ruinous optimal wagers in cumulative prospect theory
... In particular they imply individuals may maximizes their utility, called value function in Cumulative Prospect Theory, by wagering all or large proportions of their wealth on actuarially unfair ...
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Is Cumulative Prospect Theory a Serious Alternative for the Expected Utility Paradigm?
... at Cumulative Prospect Theory - the idea, which now in view of the models introduced in the preceding sections, makes perfect ...The Cumulative Prospect Theory is shown to ...
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Piecewise continuous cumulative prospect theory and behavioral financial engineering
... this theory to a broad class of structured products that comprises inter alia index, dis- count, capital guarantee, outperformance, and sprint ...of Cumulative Prospect ...
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Bounded Cumulative Prospect Theory: Some Implications for Gambling Outcomes
... Original Prospect theory (OPT), proposed by Kahneman and Tversky (1979), and Cumulative Prospect theory (CPT) as proposed by Starmer and Sugden (1989) and Tversky and Kahneman (1992) is ...
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Insurance premium calculation under continuous cumulative prospect theory
... continuous cumulative prospect theory which extends the equivalent utility ...In prospect theory risk attitude and loss aversion are shaped via a value function, whereas a ...
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