EconStor >
EconStor Direct >
Articles / Aufsätze, EconStor Direct >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/52592
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorKaivanto, Kimen_US
dc.date.accessioned2011-12-07T14:52:26Z-
dc.date.available2011-12-07T14:52:26Z-
dc.date.issued2008-
dc.identifier.citationAbdellaoui, Mohammed Hey, John D. Advances in Decision Making Under Risk and Uncertainty Theory and Decision Library C 42 Springer-Verlag Berlin, Heidelberg 2008 91-107en_US
dc.identifier.urihttp://hdl.handle.net/10419/52592-
dc.description.abstractTwo recently published studies argue that conventional parameterizations of cumulative prospect theory (CPT) fail to resolve the St. Petersburg Paradox. Yet as a descriptive theory CPT is not intended to account for the local representativeness effect, which is known to induce 'alternation bias' on binary iid sequences such as those generated by coin tossing in St. Petersburg gambles. Once alternation bias is controlled for, conventional parameterizations of CPT yield finite certainty equivalents for the St. Petersburg gamble, negating the suggested need for reparameterization. Moreover, the associated willingness to pay estimates fall within the generally accepted empirical range.en_US
dc.description.otherChapter 6en_US
dc.language.isoengen_US
dc.subject.jelD81en_US
dc.subject.jelD84en_US
dc.subject.keywordSt. Petersburg Paradoxen_US
dc.subject.keywordCumulative Prospect Theoryen_US
dc.subject.keywordLocal Representativeness Effecten_US
dc.subject.keywordAlternation Biasen_US
dc.subject.keywordLaw of Small Numbersen_US
dc.subject.stwDecision under risken_US
dc.subject.stwExpected utilityen_US
dc.subject.stwBiasen_US
dc.titleAlternation Bias and the Parameterization of Cumulative Prospect Theoryen_US
dc.typeBook Parten_US
dc.identifier.repecRePEc:zbw:espost:52592-
Appears in Collections:Articles / Aufsätze, EconStor Direct

Files in This Item:
File Description SizeFormat
Kaivanto(2007)AlternationBiasAndTheParameterizationofCPT.pdf211.98 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.