Loss aversion and perceptual risk aversion

被引:5
作者
Maggi, Mario A. [1 ]
机构
[1] Univ Padua, Dipartimento Ric Aziendali, Sez Matemat Gen & Applicata, I-27100 Pavia, Italy
关键词
cumulative prospect theory; power S-shaped value function; reference dependence utility; loss aversion;
D O I
10.1016/j.jmp.2006.03.001
中图分类号
O1 [数学];
学科分类号
0701 ; 070101 ;
摘要
We prove that, in cumulative prospect theory, the weak loss aversion for S-shaped value functions is equivalent to a notion of risk aversion that we define from the perceptual point of view. No additional assumption or condition on the probability distortion is needed. It is demonstrated that a power S-shaped value function does not satisfy weak loss aversion, i.e., a decision maker is risk seeking with respect to some mixed sign lotteries. (c) 2006 Elsevier Inc. All rights reserved.
引用
收藏
页码:426 / 430
页数:5
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