Advances in Prospect Theory¶
Tversky, A., & Kahneman, D. (1992). Advances in Prospect Theory: Cumulative Representation of Uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323.
Cited by¶
5 citations across 5 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Loss Aversion
- Cumulative prospect theory (Tversky-Kahneman 1992)
SupportedVerified against the publisher's abstract
The 1992 Tversky-Kahneman paper is the work that develops and names cumulative prospect theory, exactly as the claim states.
“We develop a new version of prospect theory that employs cumulative rather than separable decision weights and extends the theory in several respects. This version, called cumulative prospect theory, applies to uncertain as well as to risky prospects with any number of outcomes, and it allows different weighting functions for gains and for losses.”
- Cumulative prospect theory (Tversky-Kahneman 1992)
- Risk Aversion
- and its refined version cumulative prospect theory
This sourceDevelops cumulative prospect theory, using cumulative (rank-dependent) decision weights with separate weighting functions for gains and losses, predicting risk aversion for gains and risk seeking for losses (the four-fold pattern).
SupportedVerified against the publisher's abstract
The abstract states that cumulative prospect theory is a new, extended version of prospect theory, supporting the claim that it is a refined version.
“We develop a new version of prospect theory that employs cumulative rather than separable decision weights and extends the theory in several respects. This version, called cumulative prospect theory,”
- and its refined version cumulative prospect theory
Domain-specific¶
- Cumulative Prospect Theory
- Endowment Effect
- Second, loss aversion: the disutility of a loss from the reference point exceeds the utility of an equal-sized gain relative to it, by approximately a factor of two
This sourceLoss aversion as one of the two principles that shape the cumulative-prospect-theory value function.
Supported in partVerified against the source
- Second, loss aversion: the disutility of a loss from the reference point exceeds the utility of an equal-sized gain relative to it, by approximately a factor of two
- Probability Weighting Function
- Small probabilities are often overweighted, middle and high probabilities underweighted, and the transitions from impossibility to possibility or from uncertainty to certainty can receive disproportionate importance
This sourceTversky and Kahneman's cumulative prospect theory paper, which states the weighting function as a nonlinear transformation of the probability scale that overweights small probabilities and underweights moderate and high ones, with the endpoint behaviour following from diminishing sensitivity relative to impossibility and certainty.
SupportedVerified against the source
- Small probabilities are often overweighted, middle and high probabilities underweighted, and the transitions from impossibility to possibility or from uncertainty to certainty can receive disproportionate importance
Verification¶
Does it exist? Confirmed. This work's DOI resolves to a registered record, which fixes its identity. That is all it fixes.
Does it back the claim? Read against the text for 4 of 5 citations: 3 supported, 1 supported in part. Each verdict is shown under its citation below, with what in the work backs the sentence.
Support is checked per citation rather than per work — the same source can be cited soundly in one article and wrongly in another. Per-citation recording began recently, so a citation with no recorded check is a gap in the record rather than evidence it went unchecked.
See how references were verified.
Registry ID ref:eeea1b139904 · see in the full table