• Media type: Report; E-Book
  • Title: Conditioning and updating under cumulative prospect theory
  • Contributor: Stomper, Alex [Author]; Vierø, Marie-Louise [Author]
  • Published: Kingston (Ontario): Queen's University, Department of Economics, 2009
  • Language: English
  • Keywords: Prospect Theory ; Updating ; Cumulative Prospect Theory ; Conditioning ; Probability Weighting Functions ; Wahrscheinlichkeitsrechnung ; Mathematische Ökonomie
  • Origination:
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  • Description: This paper derives conditions under which the well-known decomposition of unconditional expected utility into marginal probabilities and conditional expected utility generalizes to Cumulative Prospect Theory, as well as updating rules for probability weighting functions. The results are, for example, of interest for empirical and experimental work, when available choice data is for situations where payoffs given the conditioning events are random.
  • Access State: Open Access