Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67776
Authors: 
Stomper, Alex
Vierø, Marie-Louise
Year of Publication: 
2009
Series/Report no.: 
Queen's Economics Department Working Paper 1228
Abstract: 
This paper derives conditions under which the well-known decomposition of unconditional expected utility into marginal probabilities and conditional expected utility generalizes to Cumulative Prospect Theory, as well as updating rules for probability weighting functions. The results are, for example, of interest for empirical and experimental work, when available choice data is for situations where payoffs given the conditioning events are random.
Subjects: 
Probability Weighting Functions
Cumulative Prospect Theory
Conditioning
Updating
Document Type: 
Working Paper

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