Further Reflections on Prospect Theory

@inproceedings{Laury2000FurtherRO,
  title={Further Reflections on Prospect Theory},
  author={Susan K. Laury and Charles A. Holt},
  year={2000}
}
This paper reports a new experimental test of prospect theory’s reflection effect. We conduct a sequence of experiments that allow us to directly compare choices under reflected gains and losses where real and hypothetical payoffs range from several dollars to over $100. Lotteries with positive payoffs are transformed into lotteries over losses by reflecting all payoffs around zero. When we use hypothetical payments, more than half of the subjects who are risk averse for gains turn out to be… CONTINUE READING

References

Publications referenced by this paper.
Showing 1-10 of 20 references

An Experimental Test of Several Generalized Utility Theories

  • C. F. Camerer
  • Journal of Risk and Uncertainty, 2(1), 61-104.
  • 1989
Highly Influential
8 Excerpts

Attitudes Toward Risk: Experimental Measurement in Rural India

  • H. P. Binswanger
  • American Journal of Agricultural Economics, 62(3…
  • 1980
Highly Influential
4 Excerpts

Prospect Theory: An Analysis of Choice

  • D. Kahneman, A. Tversky
  • Under Risk. Econometrica,
  • 1979
Highly Influential
10 Excerpts

Pay One or Pay All: Random Selection of One Choice for Payment

  • S. K. Laury
  • Georgia State University Working Paper.
  • 2002
Highly Influential
5 Excerpts

Testing Between Alternative Models of Choice Under Uncertainty: Some Initial Results

  • R. C. Battalio, J. H. Kagel, K. Jiranyakul
  • Journal of Risk and Uncertainty,
  • 1990
Highly Influential
5 Excerpts

Payoff Effects and Risk Preference Under Real and Hypothetical Conditions

  • S. K. Laury, C. A. Holt
  • Handbook of Experimental Results,
  • 2002
2 Excerpts

Prospect Theory in Choice and Pricing Tasks

  • W. T. Harbaugh, K. Krause, L. Vesterlund
  • 2002
1 Excerpt

Similar Papers

Loading similar papers…