Additive Utility in Prospect Theory

Published Online:https://doi.org/10.1287/mnsc.1080.0978

References

  • Abdellaoui M. Parameter-free elicitation of utilities and probability weighting functions. Management Sci. (2000) 46:1497–1512LinkGoogle Scholar
  • Abdellaoui M., Barrios C., Wakker P. P. Reconciling introspective utility with revealed preference: Experimental arguments based on prospect theory. J. Econometrics (2007) 138:356–378CrossrefGoogle Scholar
  • Abdellaoui M., Bleichrodt H., l'Haridon O. A tractable method to measure utility and loss aversion under prospect theory. J. Risk Uncertainty (2008) 36:245–266CrossrefGoogle Scholar
  • Abdellaoui M., Bleichrodt H., Paraschiv C. Measuring loss aversion under prospect theory: A parameter-free approach. Management Sci. (2007) 53:1659–1674LinkGoogle Scholar
  • Abdellaoui M., Vossmann F., Weber M. Choice-based elicitation and decomposition of decision weights for gains and losses under uncertainty. Management Sci. (2005) 51:1384–1399LinkGoogle Scholar
  • Bateman I., Munro A., Rhodes B., Starmer C., Sugden R. A test of the theory of reference-dependent preferences. Quart. J. Econom. (1997) 62:479–505CrossrefGoogle Scholar
  • Birnbaum M. H. New paradoxes of risky decision making. Psych. Rev. (2008) 115:463–501CrossrefGoogle Scholar
  • Bleichrodt H., Miyamoto J. A characterization of quality-adjusted life-years under cumulative prospect theory. Math. Oper. Res. (2003) 28:181–193LinkGoogle Scholar
  • Bleichrodt H., Pinto J. L. A parameter-free elicitation of the probability weighting function in medical decision analysis. Management Sci. (2000) 46:1485–1496LinkGoogle Scholar
  • Bleichrodt H., Pinto J. L. Loss aversion and scale compatibility in two-attribute trade-offs. J. Math. Psych. (2002) 46:315–337CrossrefGoogle Scholar
  • Diecidue E., Schmidt U., Zank H. Parametric weighting functions. J. Econom. Theory (2009) . ForthcomingCrossrefGoogle Scholar
  • Dyckerhoff R. Decomposition of multivariate utility functions in non-additive utility theory. J. Multi-Criteria Decision Anal. (1994) 3:41–58CrossrefGoogle Scholar
  • Dyer J. S., Edmunds T., Butler J. C., Jia J. A multiattribute utility analysis of alternatives for the disposition of surplus weapons-grade plutonium. Oper. Res. (1998) 46:749–762LinkGoogle Scholar
  • Etchart-Vincent N. Is probability weighting sensitive to the magnitude of consequences? An experimental investigation on losses. J. Risk Uncertainty (2004) 28:217–235CrossrefGoogle Scholar
  • Farquhar P. H. A fractional hypercube decomposition theorem for multiattribute utility functions. Oper. Res. (1975) 23:941–967LinkGoogle Scholar
  • Fischer G. W., Kamlet M. S., Fienberg S. E., Schkade D. Risk preferences for gains and losses in multiple objective decision making. Management Sci. (1986) 32:1065–1086LinkGoogle Scholar
  • Fishburn P. C. Independence in utility theory with whole product sets. Oper. Res. (1965) 18:28–45LinkGoogle Scholar
  • Fishburn P. C. Multiattribute nonlinear utility theory. Management Sci. (1984) 30:1301–1310LinkGoogle Scholar
  • Fox C. R., Tversky A. A belief-based account of decision under uncertainty. Management Sci. (1998) 44:879–895LinkGoogle Scholar
  • Kahneman D., Tversky A. Prospect theory: An analysis of decision under risk. Econometrica (1979) 47:263–291CrossrefGoogle Scholar
  • Keeney R., Raiffa H.Decisions with Multiple Objectives (1976) (Wiley, New York) Google Scholar
  • Keller R. L., Kleinmuntz D. N. Is this the right time for a new decision analysis journal? Decision Anal. Soc. Newsletter (1998) 17:3Google Scholar
  • Kilka M., Weber M. What determines the shape of the probability weighting function under uncertainty? Management Sci. (2001) 47:1712–1726LinkGoogle Scholar
  • Köbberling V., Wakker P. P. Preference foundations for nonexpected utility: A generalized and simplified technique. Math. Oper. Res. (2003) 28:395–423LinkGoogle Scholar
  • Köbberling V., Wakker P. P. An index of loss aversion. J. Econom. Theory (2005) 122:119–131CrossrefGoogle Scholar
  • Marley A. A. J., Luce D. R. Independence properties vis-à-vis several utility representations. Theory Decision (2005) 58:77–143CrossrefGoogle Scholar
  • Miyamoto J. M. Generic utility theory: Measurement foundations and applications in multiattribute utility theory. J. Math. Psych. (1988) 32:357–404CrossrefGoogle Scholar
  • Miyamoto J. M., Wakker P. P. Multiattribute utility theory without expected utility foundations. Oper. Res. (1996) 44:313–326LinkGoogle Scholar
  • Payne J. W., Laughhunn D. J., Crum R. Multiattribute risky choice behavior: The editing of complex prospects. Management Sci. (1984) 30:1350–1361LinkGoogle Scholar
  • Prelec D. The probability weighting function. Econometrica (1998) 66:497–527CrossrefGoogle Scholar
  • Rottenstreich Y., Hsee C. K. Money, kisses, and electric shocks: On the affective psychology of risk. Psych. Sci. (2001) 12:185–190CrossrefGoogle Scholar
  • Sarin R. K., Wakker P. P. Dynamic choice and nonexpected utility. J. Risk Uncertainty (1998) 17:87–119CrossrefGoogle Scholar
  • Schmidt U. Reference dependence in cumulative prospect theory. J. Math. Psych. (2003) 47:122–131CrossrefGoogle Scholar
  • Schunk D., Betsch C. Explaining heterogeneity in utility functions by individual differences in decision modes. J. Econom. Psych. (2006) 27:386–401CrossrefGoogle Scholar
  • Smith J. E., Keeney R. L. Your money or your life: A prescriptive model for health, safety, and consumption decisions. Management Sci. (2005) 51:1309–1325LinkGoogle Scholar
  • Smith J. E., von Winterfeldt D. Decision analysis in Management Science. Management Sci. (2004) 50:561–574LinkGoogle Scholar
  • Tversky A., Fox C. Weighing risk and uncertainty. Psych. Rev. (1995) 102:269–283CrossrefGoogle Scholar
  • Tversky A., Kahneman D. Loss aversion in riskless choice: A reference-dependent model. Quart. J. Econom. (1991) 56:1039–1061CrossrefGoogle Scholar
  • Tversky A., Kahneman D. Advances in prospect theory: Cumulative representation of uncertainty. J. Risk Uncertainty (1992) 5:297–323CrossrefGoogle Scholar
  • Wakker P. P. Unbounded utility for Savage's “Foundation of Statistics,” and other models. Math. Oper. Res. (1993) 18:446–485LinkGoogle Scholar
  • Wakker P. P., Deneffe D. Eliciting von Neumann-Morgenstern utilities when probabilities are distorted or unknown. Management Sci. (1996) 42:1131–1150LinkGoogle Scholar
  • Wakker P. P., Tversky A. An axiomatization of cumulative prospect theory. J. Risk Uncertainty (1993) 7:147–176CrossrefGoogle Scholar
  • Wakker P. P., Zank H. A simple preference-foundation of cumulative prospect theory with power utility. Eur. Econom. Rev. (2002) 46:1253–1271CrossrefGoogle Scholar
  • Wu G., Gonzalez R. Nonlinear decision weights in choice under uncertainty. Management Sci. (1999) 45:74–85LinkGoogle Scholar
  • Zank H. Cumulative prospect theory for parametric and multiattribute utilities. Math. Oper. Res. (2001) 26:67–81LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.