CHANGE LANGUAGE | Home > Doc > The PD-Utility Function for Prospect Behavior and Related Researches

Feng Dai:

The PD-Utility Function for Prospect Behavior and Related Researches

Based on Partial Distribution, we put forward a PD-utility function of prospect behavior for the first time, the profiting utility function and losing utility function. The PD-utility function can reflect sufficiently the human’s risk preferences properties to profiting or losing, describe and bring to light availably the important relations between profiting utility and losing utility, and interpret many conclusions in Daniel Kahneman’s prospect theory in analytic way.

Prof. Feng Dai, Prof. Song-tao Wu, Prof. Ya-jun Zhuang

Department of Management Science, Zhengzhou Information Engineering University

Summary:

•Abstract - Introduction

• Basic Assumptions

•Partial Distribution and the method of measuring RL

•The prospect utility function and analysis of risk preference

•Analysis of Pd-Utility Function Characteristics

•Comparison Analysis between losing and profiting utility

•Analytic essential indexes about RP

•The Calculating Formula for the optimal value for RL

•Conclusions and Remarks

•References

• Books Related

PerformanceTrading.it ed il suo contenuto sono di esclusiva proprietà degli autori. E' vietata la riproduzione anche parziale di qualsiasi parte del sito senza autorizzazione, compresa la grafica e il layout. Prima della consultazione del sito leggere il disclaimer nella sezione [info].