Baucells, Manel; Heukamp, Franz H. - In: Management Science 52 (2006) 9, pp. 1409-1423
cumulative prospect theory. In the experimental part of the paper, we offer a test of several joint hypotheses on the value …We generalize and extend the second-order stochastic dominance condition for expected utility to cumulative prospect … theory. The new definitions include preferences represented by S-shaped value functions, inverse S-shaped probability …