Article ID Journal Published Year Pages File Type
5061683 Economics Letters 2009 4 Pages PDF
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.

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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
The expo-power value function as a candidate for the work-horse specification in parametric versions of cumulative prospect theory
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