Schmidt, Ulrich; Zank, Horst - In: Journal of Risk and Uncertainty 30 (2005) 2, pp. 157-167
A behavioral definition of loss aversion is proposed and its implications for original and cumulative prospect theory … are analyzed. Original prospect theory is in agreement with the new loss aversion condition, and there utility is … capturing all effects of loss aversion. In cumulative prospect theory loss aversion is captured by both the weighting functions …