E3 Prospect Theory (Value Function and Probability Weighting)

Title

Non-linear deformation of subjective value with respect to a reference point (gain/loss asymmetry) and perceived probability. It includes the added prospective value (sum over possible outcomes), which is the final output of the decision-under-risk mini-simulator.

ID:4337

gphysics.net - Dr. Willy H. Gerber
Palos Verdes, Costa de Corral, Chile