As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions to the literature, and provides some illustrations of the remarkable research saga in risk theory over the last 50 …

the probability of that outcome. In rank-dependent utility theories, including prospect theory, the probability weighting … Tversky and Kahneman (Tversky, Amos, Daniel Kahneman. 1992. Advances in prospect theory: Cumulative representation of … uncertainty. J. Risk and Uncertainty 5 297--323.) and Prelec (Prelec, Dra\v{z}en. 1995. The probability weighting function …