TY - JOUR

T1 - A testing method of probability weighting functions from an axiomatic perspective

AU - Takemura, Kazuhisa

AU - Murakami, Hajime

N1 - Publisher Copyright:
© 2018 Takemura and Murakami.

PY - 2018

Y1 - 2018

N2 - This study presents a testing approach to examine various models of probability weighting functions that are considered nonlinear functions of probability in behavioral decision theory, such as prospect theory. Although there are several empirical psychometric tests to examine probability weighting functions, there is no concrete method to examine these functions’ axiomatic properties. We propose axiomatic properties and a testing method to examine the generalized hyperbolic logarithmic model, power model, and exponential power model of the probability weighting functions, and provide an illustrative example of the testing method.

AB - This study presents a testing approach to examine various models of probability weighting functions that are considered nonlinear functions of probability in behavioral decision theory, such as prospect theory. Although there are several empirical psychometric tests to examine probability weighting functions, there is no concrete method to examine these functions’ axiomatic properties. We propose axiomatic properties and a testing method to examine the generalized hyperbolic logarithmic model, power model, and exponential power model of the probability weighting functions, and provide an illustrative example of the testing method.

KW - Axiomatic approach

KW - Decision under risk

KW - Hyperbolic logarithmic discounting

KW - Probability weighting function

KW - Time discounting

UR - http://www.scopus.com/inward/record.url?scp=85097311384&partnerID=8YFLogxK

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U2 - 10.3389/fams.2018.00048

DO - 10.3389/fams.2018.00048

M3 - Article

AN - SCOPUS:85097311384

VL - 4

SP - 1

EP - 8

JO - Frontiers in Applied Mathematics and Statistics

JF - Frontiers in Applied Mathematics and Statistics

SN - 2297-4687

M1 - 48

ER -