1995-11-01
Risk Attitudes and Decision Weights
Publication
Publication
The American Journal of Cardiology , Volume 63 - Issue 6 p. 1255- 1280
To accommodate the observed pattern of risk-aversion and risk-seeking, as well as common violations of expected utility (e.g., the certainty effect), we introduce and characterize a weighting function according to which an event has greater impact when it turns impossibility into possibility, or possibility into certainty, that when it merely makes a possibility more or less likely. We show how to compare such weighting functions (of different individuals) with respect to the degree of departure from expected utility, and we present a method for comparing an individual's weighting functions for risk and for uncertainty.
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hdl.handle.net/1765/23118 | |
The American Journal of Cardiology | |
Organisation | Erasmus School of Economics |
Tversky, A., & Wakker, P. (1995). Risk Attitudes and Decision Weights. The American Journal of Cardiology, 63(6), 1255–1280. Retrieved from http://hdl.handle.net/1765/23118 |