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Applying
prospect theory to multiattribute problems with independence
assumptions
Jack Stanley and Frank P. A. Coolen
Vol. 12 (2019), No. 4, 687–711
DOI: 10.2140/involve.2019.12.687
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Abstract |
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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. |
Keywords
decision theory, independence, multiple attributes,
prospect theory, utility theory
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Mathematical Subject Classification 2010
Primary: 91B06, 91B16
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Milestones
Received: 20 July 2018
Revised: 4 October 2018
Accepted: 15 November 2018
Published: 16 April 2019
Communicated by Sat N. Gupta
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Authors |
| Jack Stanley | |
| Department of Mathematical
Sciences Durham University Durham United Kingdom |
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| Frank P. A. Coolen | |
| Department of Mathematical
Sciences Durham University Durham United Kingdom |
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