Applying prospect theory to multi-attribute problems with independence assumptions

Stanley, J.; Coolen, F.P.A.

Abstract

We discuss a descriptive theory of decision making which has received much attention in recent decades: prospect theory. We specifically focus on applying the theory to problems with two attributes, assisted by different independence assumptions. We discuss a process for solving decision problems using the theory before applying it to a real life example of purchasing breakdown cover.

Citation

Stanley, J., & Coolen, F. (2019). Applying prospect theory to multi-attribute problems with independence assumptions. Involve, 12(4), 687-711. https://doi.org/10.2140/involve.2019.12.687

• Journal Article Type: Article
• Acceptance Date: Nov 15, 2018
• Online Publication Date: Apr 16, 2019
• Publication Date: Jan 1, 2019
• Deposit Date: Nov 16, 2018
• Publicly Available Date: May 7, 2019
• Journal: Involve
• Print ISSN: 1944-4176
• Electronic ISSN: 1944-4184
• Publisher: Mathematical Sciences Publishers (MSP)
• Peer Reviewed: Peer Reviewed
• Volume: 12
• Issue: 4
• Pages: 687-711
• DOI: https://doi.org/10.2140/involve.2019.12.687
• Public URL: https://durham-repository.worktribe.com/output/1309132