Blavatskyy, Pavlo R (2005). Back to the St. Petersburg paradox? Management Science, 51(4):677-678.
The conventional parameterizations of cumulative prospect theory do not explain the St. Petersburg paradox. To do so, the power coefficient of an individual’s utility function must be lower than the power coefficient of an individual’s probability weighting function.
The conventional parameterizations of cumulative prospect theory do not explain the St. Petersburg paradox. To do so, the power coefficient of an individual’s utility function must be lower than the power coefficient of an individual’s probability weighting function.
| Item Type: | Journal Article, refereed, original work |
|---|---|
| Communities & Collections: | 03 Faculty of Economics > Department of Economics |
| Dewey Decimal Classification: | 330 Economics |
| Scopus Subject Areas: | Social Sciences & Humanities > Strategy and Management
Social Sciences & Humanities > Management Science and Operations Research |
| Uncontrolled Keywords: | Expected utility theory, Cumulative prospect theory, St. Petersburg paradox, Power utility, Probability weighting |
| Language: | English |
| Date: | April 2005 |
| Deposited On: | 11 Feb 2008 12:29 |
| Last Modified: | 01 Dec 2023 02:42 |
| Publisher: | Institute for Operations Research and the Managements Sciences (INFORMS) |
| ISSN: | 0025-1909 |
| OA Status: | Closed |
| Publisher DOI: | https://doi.org/10.1287/mnsc.1040.0352 |
Blavatskyy, Pavlo R