An Experimental Test of Prospect Theory for Predicting Choice under Ambiguity

A (Amit) Kothiyal; Vitalie Spinu; Peter Wakker

doi:10.1007/s11166-014-9185-0

An Experimental Test of Prospect Theory for Predicting Choice under Ambiguity

A (Amit) Kothiyal, Vitalie Spinu, Peter Wakker

Econometrics

Research output: Contribution to journal › Article › Academic › peer-review

36 Citations (Scopus)

Abstract

Prospect theory is the most popular theory for predicting decisions under risk. This paper investigates its predictive power for decisions under ambiguity, using its specification through the source method. We find that it outperforms its most popular alternatives, including subjective expected utility, Choquet expected utility, and three multiple priors theories: maxmin expected utility, maxmax expected utility, and a-maxmin expected utility. Look Inside Other actions Export citation Register for Journal Updates About This Journal Reprints and Permissions Add to Papers Share

Original language	English
Pages (from-to)	1-17
Number of pages	17
Journal	Journal of Risk and Uncertainty
Volume	48
Issue number	1
DOIs	https://doi.org/10.1007/s11166-014-9185-0
Publication status	Published - 2014

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EMC NIHES-04

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10.1007/s11166-014-9185-0

http://hdl.handle.net/1765/76332

Cite this

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AB - Prospect theory is the most popular theory for predicting decisions under risk. This paper investigates its predictive power for decisions under ambiguity, using its specification through the source method. We find that it outperforms its most popular alternatives, including subjective expected utility, Choquet expected utility, and three multiple priors theories: maxmin expected utility, maxmax expected utility, and a-maxmin expected utility. Look Inside Other actions Export citation Register for Journal Updates About This Journal Reprints and Permissions Add to Papers Share

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DO - 10.1007/s11166-014-9185-0

M3 - Article

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An Experimental Test of Prospect Theory for Predicting Choice under Ambiguity

Abstract

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