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
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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 -