Further Reflections on Prospect Theory

Further reflections on TREC

The paper reviews the TREC Programme up to TREC-6 (1997), considering the test results, the substantive ®ndings for IR that follow and the lessons TREC o€ers for IR evaluation. The paper focuses on the ad hoc retrieval task, with discussion of other test tracks as appropriate. The paper summarises the structure of the TREC work and analyses the experimental data in some detail. The analysis of ...

A Further Examination of Cumulative Prospect Theory Parameterizations

Recent experimental studies have focused on fitting parameterized functional forms to cumulative prospect theory's weighting function. This paper examines the behavioral implications of the functional forms and the estimated parameters. We find that none of the parameterizations can simultaneously account for gambling on unlikely gains and the Allais paradox behavior or other strong choice patt...

Further Reflections on the Guillotine

Prospect Theory

Prospect theory is a descriptive theory of how individuals choose among risky alternatives. The theory challenged the conventional wisdom that economic decision makers are rational expected utility maximizers. We present a number of empirical demonstrations that are inconsistent with the classical theory, expected utility, but can be explained by prospect theory. We then discuss the prospect th...

Prospect Theory

Prospect theory (Kahneman & Tversky, 1979) predictions were examined in light of ethnocentrism and intergroup conflict. An experiment conducted at the outset of the 2003 invasion of Iraq by the U.S., U. K. and their allies explored American and British participants’ preferences for certain versus uncertain gains and losses concerning Iraqi, American, and British lives. In four conditions, parti...