Equal Tails: A Simple Method to Elicit Utility Under Violations of Expected Utility

References

• Abdellaoui M (2000) Parameter-free elicitation of utility and probability weighting functions. Management Sci. 46(11): 1497–1512.Link, Google Scholar
• Abdellaoui M, Bleichrodt H, Paraschiv C (2007) Loss aversion under prospect theory: A parameter-free measurement. Management Sci. 53(10):1659–1674.Link, Google Scholar
• Abdellaoui M, Bleichrodt H, l’Haridon O, van Dolder D (2014) Source-dependence of utility and loss aversion. Working paper, Erasmus University, Amsterdam.Google Scholar
• Baucells M, Heukamp FH (2006) Stochastic dominance and cumulative prospect theory. Management Sci. 52(9):1409–1423.Link, Google Scholar
• Baucells M, Villasís A (2010) Stability of risk preferences and the reflection effect of prospect theory. Theory and Decision 68(1–2):193–211.Crossref, Google Scholar
• Bleichrodt H, Pinto JL (2000) A parameter-free elicitation of the probability weighting function in medical decision analysis. Management Sci. 46(11):1485–1496.Link, Google Scholar
• Bleichrodt H, Pinto JL, Wakker P (2001) Making descriptive use of prospect theory to improve the prescriptive use of expected utility. Management Sci. 47(11):1498–1514.Link, Google Scholar
• Bleichrodt H, Schmidt U, Zank H (2009) Additive utility in prospect theory. Management Sci. 55(5):863–873.Link, Google Scholar
• Bruhin A, Fehr-Duda H, Epper T (2010) Risk and rationality: Uncovering heterogeneity in probability distortion. Econometrica 78(4):1375–1412.Crossref, Google Scholar
• Clemen RT, Ulu C (2008) Interior additivity and subjective probability assessment of continuous variables. Management Sci. 54(4):835–851.Link, Google Scholar
• Cohen M, Jaffray JY (1988) Certainty effect versus probability distortion—an experimental-analysis of decision-making under risk. J. Experiment. Psych.-Human Perception Performance 14(4):554–560.Crossref, Google Scholar
• Davidson D, Suppes P, Siegel S (1957) Decision Making: An Experimental Approach (Stanford University Press, Stanford, CA).Google Scholar
• Farquhar P (1984) Utility assessment methods. Management Sci. 30(11):1283–1300.Link, Google Scholar
• Fennema H, Van Assen M (1998) Measuring the utility of losses by means of the trade-off method. J. Risk and Uncertainty 17(3):277–295.Crossref, Google Scholar
• Harless DW, Camerer CF (1994) The predictive utility of generalized expected utility theories. Econometrica 62(6):1251–1289.Crossref, Google Scholar
• Hershey JC, Schoemaker PJH (1985) Probability versus certainty equivalence methods in utility measurement—are they equivalent. Management Sci. 31(10):1213–1231.Link, Google Scholar
• Johnson C, Baillon A, Bleichrodt H, Li Z, van Dolder D, Wakker PP (2014) Prince: An improved method for measuring incentivized preferences. Working paper, Erasmus University, Amsterdam.Google Scholar
• Kahneman D, Tversky A (1979) Prospect theory: An analysis of decision under risk. Econometrica 47(2):263–292.Crossref, Google Scholar
• Keeney RL, Raiffa H (1976) Decisions with Multiple Objectives: Preference and Value Tradeoffs (John Wiley & Sons, New York).Google Scholar
• Machina M (1989) Dynamic consistency and non-expected utility models of choice under uncertainty. J. Econom. Literature 27(4):1622–1668.Google Scholar
• McCord M, de Neufville R (1986) “Lottery Equivalents”: Reduction of the certainty effect problem in utility assessment. Management Sci. 32(1):56–60.Link, Google Scholar
• Officer RR, Halter AN (1968) Utility analysis in a practical setting. Amer. J. Agricultural Econom. 50(2):257–277.Crossref, Google Scholar
• Prelec D (1998) The probability weighting function. Econometrica 66(3):497–527.Crossref, Google Scholar
• Read D, Loewenstein G, Rabin M (1999) Choice bracketing. J. Risk and Uncertainty 19(1–3):171–197.Crossref, Google Scholar
• Robinson A, Spencer A, Moffatt P (2014) A framework for estimating health state utility values within a discrete choice experiment modeling risky choices. Medical Decision Making 35(3):341–350.Crossref, Google Scholar
• Tversky A, Fox C (1995) Weighing risk and uncertainty. Psych. Rev. 102(2):269–283.Crossref, Google Scholar
• Tversky A, Kahneman D (1992) Advances in prospect theory: Cumulative representation of uncertainty. J. Risk and Uncertainty 5(4):297–323.Crossref, Google Scholar
• Tversky A, Wakker P (1995) Risk attitudes and decision weights. Econometrica 63(6):1255–1280.Crossref, Google Scholar
• van de Kuilen G, Wakker P (2011) The midweight method to measure attitudes toward risk and ambiguity. Management Sci. 57(3):582–598.Link, Google Scholar
• Wakker P, Deneffe D (1996) Eliciting von Neumann-Morgenstern utilities when probabilities are distorted or unknown. Management Sci. 42(8):1131–1150.Link, Google Scholar
• Weinstein MC, Siegel JE, Gold MR, Kamlet MS, Russell LB (1996) Cost-Effectiveness in Health and Medicine, Vol. 55 (Oxford University, New York).Google Scholar
• Wu G, Gonzalez R (1996) Curvature of the probability weighting function. Management Sci. 42(12):1676–1690.Link, Google Scholar
• Wu G, Gonzalez R (1999) Nonlinear decision weights in choice under uncertainty. Management Sci. 45(1):74–85.Link, Google Scholar