Kaluszka, Marek; Krzeszowiec, Michał - In: Insurance: Mathematics and Economics 50 (2012) 1, pp. 159-166
The aim of this paper is to introduce a premium principle which relies on Cumulative Prospect Theory by Kahneman and Tversky. Some special cases of this premium principle have already been studied in the actuarial literature. In the paper, properties of this premium principle are examined.