According to disposition effect theory, people hold losing investments too long. However, many investors eventually … study integrates prospect theory, utility maximization theory, and theory on reference point adaptation to argue that the …

This paper analyzes insurance demand under prospect theory in a simple model with two states of the world and fair … ; prospect theory ; flood insurance ; diminishing sensitivity ; loss aversion …

Within the prospect theory the paper examines production and hedging decisions of a competitive firm under price … uncertainty. We consider the prospect theory for the firm's utility function in the two moment model known as (mu … theory, mean-variance model, price uncertainty …

help explain several anomalies associated with prospect theory, including probability weighting, loss aversion, and framing …. Prospect theory's four-fold pattern of probability weighting predicts that decision makers favor long-shots, avoid near sure … those of prospect theory, they differ in some cases, allowing for tests between the theories. The theoretical predictions …

In this study we propose an axiomatic theory of decision-making under risk that is based on a new approach to the … models that allow objective statistical dependence, as in Regret Theory, in our model the emphasis is on alternative …

-run by expected utility maximisers with the share they would receive if their preferences were described by prospect theory … condition for individuals to obtain a higher share of the pie if their preferences obey prospect theory rather than expected … utility. I decompose the effect that the three features that characterise prospect theory preferences - reference point …

reference state she compares it to. According to economic theory, the reference state is determined by past, present and future …