Prospect Theory and the Wisdom of the Inner Crowd

Publication Year:
Usage 108
Downloads 108
Social Media 3
Tweets 3
Repository URL:
Hartmann, Stephan
Most Recent Tweet View All Tweets
preprint description
We give a probabilistic justification of the shape of one of the probability weighting functions used in Prospect Theory. To do so, we use an idea recently introduced by Herzog and Hertwig (2014). Along the way we also suggest a new method for the aggregation of probabilities using statistical distances.