. In contrast to commonly used utility functions, prospect theory can predict this behavioral pattern. In our experiment …

risk aversion in losses. This fourfold pattern was not addressed by either version of prospect theory (Kahneman and Tversky …:297–323, <CitationRef CitationID="CR43">1992</CitationRef>). We show how prospect theory can accommodate the pattern by combining an … overweighting of low probabilities with a decreasingly elastic value function. We then examine the performance of prospect theory …

comparable magnitude, a result that is equidistant from the diverging two popular views inspired by Prospect Theory: the gain …