Prospect theory : for risk and ambiguity / Peter P. Wakker.

Format:

Book

Author/Creator:

Wakker, Peter P., 1956- author.

Language:

English

Subjects (All):

Decision making.

Risk.

Uncertainty.

Probabilities.

Physical Description:

1 online resource (xiii, 503 pages) : digital, PDF file(s).

Place of Publication:

Cambridge : Cambridge University Press, 2010.

Language Note:

English

Summary:

Prospect Theory: For Risk and Ambiguity, first published in 2010, provided the first comprehensive and accessible textbook treatment of the way decisions are made both when we have the statistical probabilities associated with uncertain future events (risk) and when we lack them (ambiguity). The book presents models, primarily prospect theory, that are both tractable and psychologically realistic. A method of presentation is chosen that makes the empirical meaning of each theoretical model completely transparent. Prospect theory has many applications in a wide variety of disciplines. The material in the book has been carefully organized to allow readers to select pathways through the book relevant to their own interests. With numerous exercises and worked examples, the book is ideally suited to the needs of students taking courses in decision theory in economics, mathematics, finance, psychology, management science, health, computer science, Bayesian statistics, and engineering.

Contents:

Introduction

Expected utility. The general model of decision under uncertainty no-arbitrage (expected utility with known utilities and unknown probabilities)

Expected utility with known probabilities

'risk'

and unknown utilities

Applications of expected utility for risk

Expected utility with unknown probabilities and unknown utilities

Nonexpected utility for risk. Heuristic arguments for probabilistic sensitivity and rank dependence

Probabilistic sensitivity and rank dependence analyzed

Applications and extensions of rank dependence

Where prospect theory deviates from rank-dependent utility and expected utility: reference dependence versus asset integration

Prospect theory for decision under risk

Nonexpected utility for uncertainty. Extending rank-dependent utility from risk to uncertainty

Ambiguity: where uncertainty extends beyond risk

Prospect theory for uncertainty

Conclusion.

Notes:

Title from publisher's bibliographic system (viewed on 05 Oct 2015).

Includes bibliographical references and indexes.

ISBN:

0-511-85028-X

1-107-20863-7

1-282-72485-1

9786612724855

0-511-77932-1

0-511-77581-4

0-511-77657-8

0-511-77399-4

0-511-77292-0

0-511-77505-9

OCLC:

651599433