Harin, Alexander (2015): Problems of utility and prospect theories. A “certain–uncertain” inconsistency within their experimental methods.

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Abstract
In random–lottery incentive experiments, the choices of certain outcomes are stimulated by uncertain lotteries. This “certain–uncertain” inconsistency is evident, but only recently emphasized. Because of it, conclusions from a random–lottery incentive experiment that includes a certain outcome cannot be unquestionably correct. Wellknown experimental results and purely mathematical theorems support this. The main result presented here is: The usual experimental systems of utility and prospect theories may need additional independent analyses in the context of the “certain–uncertain” inconsistency.
Item Type:  MPRA Paper 

Original Title:  Problems of utility and prospect theories. A “certain–uncertain” inconsistency within their experimental methods 
Language:  English 
Keywords:  utility; prospect theory; experiment; incentive; randomlottery incentive system; Prelec; probability weighting function; 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General C  Mathematical and Quantitative Methods > C9  Design of Experiments C  Mathematical and Quantitative Methods > C9  Design of Experiments > C90  General C  Mathematical and Quantitative Methods > C9  Design of Experiments > C91  Laboratory, Individual Behavior C  Mathematical and Quantitative Methods > C9  Design of Experiments > C93  Field Experiments D  Microeconomics > D8  Information, Knowledge, and Uncertainty D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty 
Item ID:  67911 
Depositing User:  Alexander Harin 
Date Deposited:  16 Nov 2015 22:22 
Last Modified:  27 Sep 2019 08:07 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/67911 