Showing papers on "Certainty effect published in 2000"
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TL;DR: For example, this article showed that people are sometimes risk-averse in gains but risk-loving in losses, and that such behavior and other anomalies underlying prospect theory arise from a model of local status maximization in which consumers compare their wealth with other consumers of similar wealth.
Abstract: People are sometimes risk-averse in gains but risk-loving in losses. Such behavior and other anomalies underlying prospect theory arise from a model of local status maximization in which consumers compare their wealth with other consumers of similar wealth. This social explanation shares key features with the psychological explanation o.ered by Kahneman and Tversky.
TL;DR: This paper proposes two particular hypotheses of decision weights which underweight all probabilities less than unity, which lead to special cases of a class of models which have been developed to accommodate the certainty effect and boundary effects but have not been related to transformed probabilities before.