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The PD-Utility Function for Prospect Behavior and Related Researches

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

The PD-Utility Function for Prospect Behavior

References

[1] D. Kahneman and A. Tversky.1979. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica. 47:2, pp. 263-291.

[2] D. Kahneman, J. L. Knetsch, R. H. Thaler. 1986. “Fairness and the Assumptions of Economics.” Journal of Business. 59:4, pp. 285-300.

[3] A. Tversky, D. Kahneman.1986. “Rational Choice and the Framing of Decisions,” Journal of Business. 59:4, pp. 251-278.

[4] D. Kahneman, J. L. Knetsch, R.Thaler.1986. “Fairness as a Constraint on Profiting Seeking: Entitlements in the Market,” American Economic Review, Vol.6, no.4, pp. 728-741.

[5] D. Kahneman, J. L. Knetsch, R. H.Thaler. 1990. “Experimental Tests of the Endowment Effect and the Coase Theorem.” Journal of Political Economy. 98:6, pp. 1325-1348.

[6] A. Tversky, P. Slovic, D.Kahneman.1990. “The Causes of Preference Reversal.” American Economic Review. .80:1, pp. 204-217.

[7] D. Kahneman, J. L. Knetsch, R. H.Thaler. 1991. “The Endowment Effect, Losing Aversion, and Status Quo Bias: Anomalies.” Journal of Economic Perspectives. 5:1, pp. 193-206,

[8] D. Kahneman, A.Tversky.1991. “Losing Aversion in Riskless Choice: A Reference-Dependent Model.” The Quarterly Journal of Economics. 106:4, pp. 1039-61.

[9] D. Kahneman and R. H. Thaler.1991. “Economic Analysis and thePsychology of Utility: Applications to Compensation Policy.” American Economic Review. 81:2, pp. 341-346.

[10] D. Kahneman, P. P. Wakker, R. Sarin. 1997. “Back to Bentham? Explorations of Experienced Utility.” The Quarterly Journal of Economics. 112:2, pp. 375-405.

[11] F. Dai and G. Ji. 2001. “A New Kind of Pricing Model for Commodity and Estimating Indexes System for Price Security.” Chinese Journal of Management Science. 9:1, pp. 62-69.

[12] F. Dai and L. Liang.2001. “The Market Value Analytic Process for Investment Based on the Partial Distribution.” Proceedings of SCI 2001/ ISAS 2001. Orlando. USA.

[13] F. Dai and L. Lu. 2001. “The Investment Analytic Process based on the Partial Distribution.” Chinese Journal of Management Science. 9, pp. 315-320,.

[14] F. Dai, W. X. Xu, H. Liu, H. Xu. 2003. “A New Kind of method of Optimal Pricing for Commodity.” Chinese Journal of Management Science. 11:1, pp,33-37.

[15] F. Dai, X. Chen, K. Sun. 2003 .“The Pd-Fitness Analysis of Price Structures On Chinese Stocks Market.” Proceedings of SCI 2003. Orlando.USA.

[16] F. DAI, H. LIU, Z. QIN, “The Model of Optimal Pricing for Assets Based On the Partial Distribution and Its Empirical Research,” IEEE 2003 IEMC Conference Proceedings, pp. 311-315.

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

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