aversion as predicted by the endowment effect hypothesis and prospect theory. …

Prospect theory is a descriptive model of individual decision-making under risk (Kahneman and Tversky 1979). The … central tenet of prospect theory posits that the risk orientation of decision-makers is affected by the gains vs. losses … domain of losses. Although prospect theory made significant contributions to decision theory, it has important limitations …

approaches from decision theory. Furthermore, we show why playing poker is similar to trading in a financial market. After …

second essay follows up on this argument byincorporating prospect theory into the formulation of individualpreferences …. Prospect theory proposes that agents care aboutchanges in their wealth level rather than the level of their finalwealth, and … individuals are also taken to be more sensitive tolosses than gains in their financial wealth. According to theprospect theory …

better-informed speculators displays preferences consistent with Kahneman and Tversky’s (1979) Prospect Theory, i.e., loss …

negligible. The second essay follows up on this argument by incorporating prospect theory into the formulation of individual … preferences. Prospect theory proposes that agents care about changes in their wealth level rather than the level of their final … prospect theory, therefore, the agents take fluctuations in the asset returns seriously. Results from empirical tests find that …

elements of the prospect theory developed by Kahneman and Tversky (1979). In addition to consumption, stockholders consider …

variant of prospect theory assuming that the sensitivity to the weighted values decreases with the distance between the …