The expo-power value function as a candidate for the work-horse specification in parametric versions of cumulative prospect theory

Peel, D and Zhang, J (2009) The expo-power value function as a candidate for the work-horse specification in parametric versions of cumulative prospect theory. Economics Letters, 105 (3). pp. 326-329. ISSN 0165-1765

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Official URL: https://doi.org/10.1016/j.econlet.2009.09.007

Abstract

The piecewise power value function proposed by Kahneman and Tversky is inconsistent with both theoretical and experimental work. We propose the expo-power function as an alternative to the power function and examine its ability to explain choices in Allais experiments.

Item Type:

Journal Article

Journal or Publication Title:

Economics Letters

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000/2002

Subjects:

?? FINANCEECONOMICS AND ECONOMETRICS ??

Departments:

Lancaster University Management School > Economics
Lancaster University Management School > Institute for Enterprise & Entrepeneurial Development (IEED)

ID Code:

45565

Deposited By:

ep_importer_pure

Deposited On:

11 Jul 2011 18:34

Refereed?:

Published?:

Published

Last Modified:

22 Sep 2023 00:12

URI:

https://eprints-dev.lancs.ac.uk/id/eprint/45565