The expo-power value function as a candidate for the work-horse specification in parametric versions of cumulative prospect theory

David Peel and Jie Zhang

Economics Letters, 2009, vol. 105, issue 3, 326-329

Abstract: The piecewise power value function proposed by Kahneman and Tversky is inconsistent with both theoretical and experimental work. We propose the expo-power function as an alternative to the power function and examine its ability to explain choices in Allais experiments.

Keywords: Cumulative; prospect; theory; Expo-power; value; function; Exponential; value; function (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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