WP 2017-01 The Empirical Adequacy of Cumulative Prospect Theory and its Implications for Normative Assessment
Published in 2017 in Journal of Economic Methodology, Volume 24, Number 2.
AUTHORS: Glenn W. Harrison and Don Ross
ABSTRACT: Much behavioral welfare economics assumes that expected utility theory (EUT) does not accurately describe most human choice under risk. A substantial literature instead evaluates welfare consequences by taking cumulative prospect theory… more »