In a classroom choice experiment with mixed gambles and moderate probabilities, we find severe violations of cumulative prospect theory (CPT) and of Markowitz stochastic dominance. Our results shed new light on the exchange between Levy and Levy (2002) and Wakker (2003) in this journal.

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ERIM Top-Core Articles
Management Science
Erasmus Research Institute of Management

Baltussen, G., Post, T., & van Vliet, P. (2006). Violations of Cumulative Prospect Theory in Mixed Gambles with Moderate Probabilities. Management Science, 52(8), 1288–1290. doi:10.1287/mnsc.1050.0544