Prospect theory and loss aversion
Inefficient Reallocation, Loss Aversion and Prospect Theory
... justify loss aversion as observed in ...the loss aversion axiom of Tversky and Kahneman (1991), and the equivalent loss aversion assumption of prospect theory in ...
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Inefficient Reallocation, Loss Aversion and Prospect Theory
... justify loss aversion as observed in ...the loss aversion axiom of Tversky and Kahneman (1991), and the equivalent loss aversion assumption of prospect theory in ...
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Loss aversion and ruinous optimal wagers in cumulative prospect theory
... Cumulative Prospect Theory, by wagering all or large proportions of their wealth on actuarially unfair ...that loss aversion is unbounded and increases as stake size ...
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Loss Aversion under Prospect Theory: a Parameter-Free Measurement
... measure loss aversion at the individual level and without making parametric ...of loss aversion depend on the appropriateness of the selected functional forms so that one does not know whether ...
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Estimating Parametric Loss Aversion with Prospect Theory: Recognising and Dealing with Size Dependence
... Parametric Loss Aversion with Prospect Theory: Recognising and Dealing with Size ...of loss aversion requires either the imposition of rotational symmetry on the utility function ...
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Measuring loss aversion under ambiguity: a method to make prospect theory completely observable
... apply prospect theory to such decision situations requires methods to measure its ...and loss aversion can be measured in decision under ...makes prospect theory completely ...
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Measuring loss aversion under ambiguity: a method to make prospect theory completely observable
... apply prospect theory to such decision situations requires methods to measure its ...and loss aversion can be measured in decision under ...makes prospect theory completely ...
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Prospect Theory: Test on Framing and Loss Aversion Effects on Investors Decision-Making Process At the Nairobi Securities Exchange, Kenya
... this theory is consistent with the way people perceive attributes such as brightness, loudness or temperature relative to earlier ...losses. Prospect theory according to Ritter (2003) focuses on ...
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Loss aversion under prospect theory: A parameter-free measurement
... Table 4 shows that, by ignoring probability weighting, expected utility led to utility functions that were more concave on the gain domain and more convex on the loss domain than under p[r] ...
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Estimating parametric loss aversion with prospect theory: recognising and dealing with size dependence
... the loss aversion measures tend to be greater for the CARA compared to ...of loss aversion with respect to scale (in the sense that they are greater than unity) and the corresponding lack of ...
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Risk Aversion in Cumulative Prospect Theory
... of loss aversion arises ...risk aversion in the CPT framework we consider two specific variants of the ...risk aversion these variants lead to examples where the utility function is ...
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The Role of Emotions on Risk Aversion: A prospect theory experiment
... and loss aversion using Prospect Theory and the impact of emotions on those ...risk aversion on the gains domain decreases with age and ...that loss aversion decreases ...
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The Role of Emotions on Risk Aversion: A prospect theory experiment
... and loss aversion using Prospect Theory and the impact of emotions on those ...risk aversion on the gains domain decreases with age and ...that loss aversion decreases ...
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Composite Prospect Theory: A proposal to combine ‘prospect theory’ and ‘cumulative prospect theory’
... of loss aversion and reference dependence, which have strong explanatory power in a variety of ...of theory. Reference dependence and loss aversion are robust …ndings from exper- ...
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Performance measurement with loss aversion
... The measurement of gains and losses is critical in implementing prospect theory. An interesting feature of investors is that they tend to take greater risks when they have experienced recent gains " the ...
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Myopic loss aversion revisited
... myopic loss aversion by analyzing individual rather than aggregate choice ...myopic loss aversion. Key words: myopic loss aversion, evaluation period, prospect ...
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Endogenous Prospect Theory.
... The next section introduces our framework of decision making under uncertainty and some basic concepts. Section 3 contains our behavioral conditions and the main result: By imposing our central axiom - termed consistent ...
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Enhanced Risk Aversion, But Not Loss Aversion, in Unmedicated Pathological Anxiety.
... as prospect theory ( 8 –10 ), suggest that decision making under risk, in particular the commonly observed preference for sure outcomes over risky out- comes with equal or higher expected value, can be ...
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How to make loss aversion disappear and reverse : tests of the decision by sampling origin of loss aversion
... the prospect theory, the dominant descriptive model of decision-making under conditions of risk and uncertainty (Kahne- man & Tversky, 1979; Tversky & Kahneman, ...1992). Loss aver- sion is now ...
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Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?
... Cumulative Prospect Theory preferences, the MLA explanation is favored over ...mere loss probabilities seem to play a more minor role than suggested by previous ...
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