Journal ArticleDOI
External validity of prospect theory: The evidence from soccer betting
TLDR
In this article, the functional forms of the value and probability weighting functions commonly used for the experimental validation of prospect theory were estimated from laboratory experiments and compared to real-life betting markets.About:
This article is published in Journal of Behavioral and Experimental Finance.The article was published on 2016-12-01. It has received 8 citations till now. The article focuses on the topics: Prospect theory & Cumulative prospect theory.read more
Citations
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Posted Content
Expected utility or prospect theory maximisers? Assessing farmers' risk behaviour from field-experiment data
TL;DR: In this paper, the authors elicit the risk preferences of a sample of French farmers in a field-experiment setting, considering both expected utility and cumulative prospect theory, and show that farmers are characterised by a concave utility function for gain outcomes implying risk aversion.
Journal ArticleDOI
A Construction Schedule Robustness Measure Based on Improved Prospect Theory and the Copula-CRITIC Method
TL;DR: A construction schedule robustness measure based on improved prospect theory and the Copula-criteria importance through intercriteria correlation (CRITIC) method is proposed, and an information-entropy-based evidence reasoning method is applied to combine subjective and objective weights together while identifying their validity.
Journal ArticleDOI
Threshold-Enhanced PROMETHEE Group Decision Support under Uncertainties
TL;DR: This study proposes a comprehensive PROMETHEE-based group decision support for covering the uncertainties of threshold determination, risk preferences, and the evaluation itself, and explicitly offers statistical aggregation of individuals’ indifference and preference thresholds.
Dissertation
The impact of leader personality on inclination to adapt the business model : decision-making in environments of perceived threat and perceived opportunity.
TL;DR: In this paper, the authors examined the effect of personality traits on the relationship between risk domains and business model adaptation and found that leader Emotionality was significantly related to low risk-taking in the domain of potential gain.
Journal ArticleDOI
Sonic Thunder vs. Brian the Snail: Are people affected by uninformative racehorse names?
TL;DR: This paper examined whether individuals' decision making is affected by fast-sounding horse names in a betting exchange market environment and found evidence that the winning probabilities of bets on horses with fast sounding names are overstated, which impairs the prediction accuracy of such bets.
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
Journal ArticleDOI
Advances in prospect theory: cumulative representation of uncertainty
Amos Tversky,Daniel Kahneman +1 more
TL;DR: Cumulative prospect theory as discussed by the authors applies to uncertain as well as to risky prospects with any number of outcomes, and it allows different weighting functions for gains and for losses, and two principles, diminishing sensitivity and loss aversion, are invoked to explain the characteristic curvature of the value function and the weighting function.
Journal ArticleDOI
The probability weighting function
TL;DR: In this article, the authors show that a probability weighting function w(p) is regressive, s-shaped, concave, and asymmetric, with an invariant fixed point and inflection point at I/e =.37.
Book ChapterDOI
Risk and time preferences: linking experimental and household survey data from Vietnam
TL;DR: In this article, the authors conducted experiments in Vietnamese villages to determine the predictors of risk and time preferences and found that people are less loss-averse and more patient in villages with higher mean income.
Related Papers (5)
A Meta-Analysis of Loss Aversion in Risky Contexts
Betting on odds on favorites as an optimal choice in cumulative prospect theory
David Peel,D Law +1 more