Applying prospect theory to multi-attribute problems with independence assumptions

Stanley, J.; Coolen, F.P.A.

doi:10.2140/involve.2019.12.687

Applying prospect theory to multi-attribute problems with independence assumptions

Stanley, J.; Coolen, F.P.A.

Authors

J. Stanley

Professor Frank Coolen frank.coolen@durham.ac.uk
Professor

Abstract

We discuss a descriptive theory of decision making which has received much attention in recent decades: prospect theory. We specifically focus on applying the theory to problems with two attributes, assisted by different independence assumptions. We discuss a process for solving decision problems using the theory before applying it to a real life example of purchasing breakdown cover.

Citation

Stanley, J., & Coolen, F. (2019). Applying prospect theory to multi-attribute problems with independence assumptions. Involve, 12(4), 687-711. https://doi.org/10.2140/involve.2019.12.687

Journal Article Type	Article
Acceptance Date	Nov 15, 2018
Online Publication Date	Apr 16, 2019
Publication Date	Jan 1, 2019
Deposit Date	Nov 16, 2018
Publicly Available Date	May 7, 2019
Journal	Involve
Print ISSN	1944-4176
Electronic ISSN	1944-4184
Publisher	Mathematical Sciences Publishers (MSP)
Peer Reviewed	Peer Reviewed
Volume	12
Issue	4
Pages	687-711
DOI	https://doi.org/10.2140/involve.2019.12.687

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Copyright Statement
First published in Involve: a journal of in Vol. 12 (2019), No. 4, published by Mathematical Sciences Publishers. © 2019 Mathematical Sciences Publishers. All rights reserved.