Holden, Stein Terje; Tilahun, Mesfin; Sommervoll, Dag Einar - 2022
Certainty Equivalents. Non-linear probability weighting is modeled with a 2-parameter Prelec function. First, we identify a …-linear probability weighting can explain and reduce the observed diminishing impatience by replacing linear probability weighting with an … nor by non-linear weighting of risk in future prospects. …