A possibility of the existence of a discontinuity of Prelec’s (probability weighting) function W(p) at the probability … p = 1 is discussed. This possibility is supported by the Aczél–Luce question whether Prelec’s weighting function W(p) is …

. The need supported by the Aczél–Luce question whether Prelec’s weighting function W(p) is equal to 1 at p = 1, by the … results of the experiments of the certainty effect near the certainty show that Prelec’s (probability) weighting function can …

)=1 (whether the Prelec weighting function equals 1 at p=1). A purely mathematical theorem proves W(1)<1. Because of this evident …

Three main groups of results have been obtained: 1) The question is emphasized whether the probability weighting … function W(p) is continuous. If W(p) reveals a discontinuity at p=1, then this is a topological feature. This can qualitatively …

distortion function. As an application of this result, we show that an agent with a probability weighting function as in …

-shaped probability distribution weighting function and hyperbolic discounting. We provide possible interpretation as well as applications …