Question
With respect to Prospect Theory (Kahneman and Tversky, 1979, Prospect theory: An analysis of decision under risk, Econometrica ): What characteristic of the weighting function
With respect to Prospect Theory (Kahneman and Tversky, 1979, Prospect theory: An analysis of decision under risk, Econometrica):
What characteristic of the weighting function is consistent with investors being willing to overpay for lottery-like investments? Explain. (2 points)
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
