We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a … rational, though incomplete, ordering - with a 'psychological’ view - based on heuristics. This theory can explain observed … violations of EU theory, namely all cyclical patterns of choice as well as violations of independence. …

exemplify, we contrast the utility-based viewpoint of prospect theory against the target-based viewpoint and provide an …

utility and prospect theory. We also describe an alternative technique to estimate the four parameters from elicited utilities …

another given independent lottery. The implications of this interpretation for some topics and models in decision theory are …