William Newell’s theory of interdisciplinary studies is a timely proposal since complexity is a keyword in contemporary descriptions of interdisciplinarity. Like any other theory, it is subject to a series of questions: (1) Is the theory generalizable, and is it reductive? (2) What relationship does it have to prior theories? (3) Does the theory drive practice, or vice versa? and (4) Is it frui...

This paper introduces a multiple quantile utility model of Cumulative Prospect Theory in an ambiguous setting. We show a representation theorem in which a prospect is valued by a composite value function. The composite value function is able to represent asymmetric attitude on extreme events and a rational prudence on ordinary events.

To depict the influence of decision makers’ risk psychology on the interval-valued intuitionistic fuzzy multi-criteria decision-making process, this paper proposes a new method based on prospect theory. Considering the risk attitude of the decision maker, we transform interval-valued intuitionistic fuzzy numbers into real numbers via a prospect value function and consequently derive the prospec...

Systematic asymmetries in exchange behavior have been widely interpreted as support for endowment e ect theory, that loss aversion associated with ownership creates an asymmetry in valuations and exchange behavior. According to this theory, which is an application of prospect theory, parting with an endowed object produces a loss that is greater than the gain from acquiring another object of ot...

The paper discusses some recent developments in analysis of decision making under risk and uncertainty. First we present the expected utility theory and the basic assumptions of rationality. Second we discuss the critique that has been directed towards the expected utility theory. Next we present the alternative theories: regret theory, prospect theory and theory of stochastic preference. Final...

We offer a new explanation for the long-run underperformance of IPO stocks using prospect theory. According to this theory, uncertain outcomes enter an investor’s utility function through a nonlinear transformation of their probabilities. Small probability events are given more weight than in expected utility theory, whereas median and large probability events are given less weight. IPO stocks ...

T paper reports on the results of an experimental elicitation at the individual level of all prospect theory components (i.e., utility, loss aversion, and weighting functions) in two decision contexts: situations where alternatives are described as probability distributions and situations where the decision maker must experience unknown probability distributions through sampling before choice. ...

The aim of this paper is to propose a new multi-sensor target recognition method for solving the problem which the discriminated object has multiple characteristics indexes. The method combines the concept of gray relational analysis (GRA) method and cumulative prospect theory. This method, the characteristic vector matrix was firstly transformed to standardize membership degree decision making...