Decision theory | Prospect theory

Cumulative prospect theory

Cumulative prospect theory (CPT) is a model for descriptive decisions under risk and uncertainty which was introduced by Amos Tversky and Daniel Kahneman in 1992 (Tversky, Kahneman, 1992). It is a further development and variant of prospect theory. The difference between this version and the original version of prospect theory is that weighting is applied to the cumulative probability distribution function, as in rank-dependent expected utility theory but not applied to the probabilities of individual outcomes. In 2002, Daniel Kahneman received the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel for his contributions to behavioral economics, in particular the development of Cumulative Prospect Theory (CPT). (Wikipedia).

Cumulative prospect theory
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From playlist Probability Theory

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More resources available at www.misterwootube.com

From playlist Descriptive Statistics & Bivariate Data Analysis

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"Cumulative Frequency Graphs."

From playlist Data Handling: Averages & Range

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From playlist Physics simulations

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From playlist General Psychology Lectures

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From playlist The MacMillan Center

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From playlist Time Series Analysis

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From playlist Statistics

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From playlist The MacMillan Center

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From playlist The MacMillan Center

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From playlist Probability Theory

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From playlist 2018 - T3 - Analytics, Inference, and Computation in Cosmology

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Related pages

Prospect theory | Equity premium puzzle | Behavioral economics | Endowment effect | Status quo bias | Stochastic dominance | Expected utility hypothesis | Framing (social sciences) | Loss aversion