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Econometrica Vol. 66 No. 3 1998

The Probability Weighting Function

Drazen Prelec

Abstract

A probability weighting function w(p) is a prominent feature of several nonexpected utility theories, including prospect theory and rank-dependent models. Empirical estimates indicate that w(p) is regressive with respect to the diagonal (w(p) > p for small p, and w(p)

DOI
10.2307/2998573
Volume
66
Issue
3
Pages
497
Sources
crossref openalex bibtex:phds-export.bib

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