1994
Gains and Losses in Nonadditive Expected Utility
Publication
Publication
This paper provides a simple approach for deriving cumulative prospect theory. The key axiom is a cumulative dominance axiom which requires that a prospect be judged more attractive if in it greater gains are more likely and greater losses are less likely. In the presence of this cumulative dominance, once a model is satisfied on a "sufficiently rich" domain, then it holds everywhere. This leads to highly transparent results.
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Kluwer Academic Publishers, Dordrecht etc. | |
hdl.handle.net/1765/23188 | |
Organisation | Erasmus School of Economics |
Sarin, R., & Wakker, P. (1994). Gains and Losses in Nonadditive Expected Utility. Retrieved from http://hdl.handle.net/1765/23188 |