Home > Prospect Theory

Probabilities must be decimals and sum to one: 1 missing

Power for gainsα0.88 in T&K
Power for lossesβ0.88 in T&K
Loss aversionλ2.25 in T&K
Probability weighting parameter for gainsγ0.61 in T&K
Probability weighting parameter for lossesδ0.69 in T&K


CPT Value
Expected Return
Certainty Equivalent


OutcomeProbabilityDecision Weight
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References

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