Cumulative prospect theory and the St. Petersburg paradox
โ Scribed by Marc Oliver Rieger; Mei Wang
- Publisher
- Springer
- Year
- 2006
- Tongue
- English
- Weight
- 149 KB
- Volume
- 28
- Category
- Article
- ISSN
- 0938-2259
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
The assumption of bounded utility function resolves the St. Petersburg paradox. The justification for such a bound is provided by Brito, who argues that limited time will bound the utility function. However, a reformulated St. Petersburg game, which is played for both money and time, effectively cir
This paper discusses dierences between prospect theory and cumulative prospect theory. It shows that cumulative prospect theory is not merely a formal correction of some theoretical problems in prospect theory, but it also gives dierent predictions. Some experiments by Lola Lopes are re-analyzed, an