We present a new theory of decision under uncertainty: third-generation prospect theory (PT3). This retains the predictive power of previous versions of prospect theory, but extends that theory by allowing reference points to be uncertain while decision weights are specified in a rank-dependent...

In previous models of (cumulative) prospect theory reference-dependence of preferences is imposed beforehand and the location of the reference point is exogenously determined. This paper provides an axiomatization of a new specification of cumulative prospect theory, termed endogenous prospect...

Die konjunkturelle Expansion in den Industrieländern setzte sich im ersten Halbjahr 1989 zügig fort; die Zuwachsrate des Bruttosozialprodukts betrug etwa 3,5 vH. Allerdings gab es deutliche regionale Unterschiede. Während es in den Vereinigten Staaten, Kanada und dem Vereinigten Königreich...