This paper tests new "independence" properties to compare three models of risky decision making. According to the rank-affected multiplicative (RAM) weights model, all three properties should be satisfied; according to the transfer of attention exchange (TAX) model, two should be satisfied and one...

This experiment tested two behavioral properties of risky decision making--gain-loss separability (GLS) and coalescing. Cumulative prospect theory (CPT) implies both properties, but the transfer of attention exchange (TAX) model violates both. Original prospect theory satisfies GLS but may or...