Question
Consider a person with the following value function under prospect theory: v(w) = w.0.5 if w>0 =-2(-w)0.5 if w < 0 Assume that this individual
Consider a person with the following value function under prospect theory:
v(w) = w.0.5 if w>0
=-2(-w)0.5 if w < 0
Assume that this individual weight values by probabilities, instead of using the prospect theory weighting function. What is the value of the following prospect?
P1 (0.8, 1000, -800)
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
