A1 Loss Asymmetry Not Captured by Linear Field

Title

Discrepancy between the expected response under a simple linear field and the real response deformed by Prospect Theory (E03). It includes the relative percentage error and the materiality criterion (when the linear model is still acceptable) two outputs that allow you to gauge when it is worth using the full Prospect Theory model in the simulator.

ID:4345

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