Kothiyal, Amit; Spinu, Vitalie; Wakker, Peter - In: Journal of Risk and Uncertainty 48 (2014) 1, pp. 1-17
Prospect theory is the most popular theory for predicting decisions under risk. This paper investigates its predictive power for decisions under ambiguity, using its specification through the source method. We find that it outperforms its most popular alternatives, including subjective expected...