2014-03-03
An experimental test of prospect theory for predicting choice under ambiguity
Publication
Publication
Journal of Risk and Uncertainty p. 1- 17
Prospect theory is the most popular theory for predicting decisions under risk. This paper investigates its predictive power for decisions under ambiguity, using its specification through the source method. We find that it outperforms its most popular alternatives, including subjective expected utility, Choquet expected utility, and three multiple priors theories: maxmin expected utility, maxmax expected utility, and a-maxmin expected utility.
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| doi.org/10.1007/s11166-014-9185-0, hdl.handle.net/1765/76332 | |
| ERIM Top-Core Articles | |
| Journal of Risk and Uncertainty | |
| Organisation | Erasmus Research Institute of Management |
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Kothiyal, A., Spinu, V., & Wakker, P. (2014). An experimental test of prospect theory for predicting choice under ambiguity. Journal of Risk and Uncertainty, 1–17. doi:10.1007/s11166-014-9185-0 |
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