Al-Nowaihi, Ali; Dhami, Sanjit S. - 2010
theories, rank dependent utility (RDU) and cumulative prospect theory (CP) incorporate (i) but not (ii). By contrast, prospect … theory (PT) addresses (i) and (ii) by proposing an editing phase that eliminates extremely low probability events, followed … prospect theory (CCP). CCP combines the editing and decision phases of PT into one phase and does not allow for the choice of …