Violations at the Reference Point of Discontinuity: Limitations of Prospect Theory and an Alternative Model of Risk Choices
The tilted S-shaped utility function proposed in Prospect Theory (PT) relied fundamentally on the geometrical notion that there is a discontinuity between gains and losses, and that individual preferences change relative to a reference point. This results in PT having three distinct parameters; conc...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Ital Publication
2022-02-01
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| Series: | Emerging Science Journal |
| Subjects: | |
| Online Access: | https://www.ijournalse.org/index.php/ESJ/article/view/796 |