We find that in cumulative prospect theory (CPT) with a concave value function in gains, a lottery with finite expected value may have infinite subjective value. This problem does not occur in expected utility theory. We characterize situations in CPT where the problem can be resolved. In particular, we define a class of admissible probability distributions and admissible parameter regimes for ...

Over the past few decades, economists and psychologists have accumulated a large body of experimental evidence on attitudes to risk. This evidence reveals that, when people make decisions under risk, they often depart from the predictions of expected utility. In an effort to capture the experimental data more accurately, researchers have developed a number of so-called nonexpected utility model...

With respect to different confidence on evaluation result from different decision-makers to the hybrid multi-attribute with risk, an approach to group decisionmaking based on prospect theory and projection theory is proposed. Firstly, a tuple is established to record the evaluation result and the hybrid decision information. Then the element of the tuple is changed into a single triangular fuzz...

BACKGROUND Prospect theory suggests that when faced with an uncertain outcome, people display loss aversion by preferring to risk a greater loss rather than incurring certain, lesser cost. Providing probability information improves decision making towards the economically optimal choice in these situations. Clinicians frequently make decisions when the outcome is uncertain, and loss aversion ma...

Minimax-regret preference elicitation allows intelligent decisions to be made on behalf of people facing risky choices. Standard gamble queries, a vital tool in this type of preference elicitation, assume that people, from whom preference information is being elicited, can be modeled using expected utility theory. However, there is strong evidence from psychology that people may systematically ...