12. Cumulative Prospect Theory: Tests Using the Stochastic Dominance Approach

  1. H. Kent Baker and
  2. John R. Nofsinger
  1. Haim Levy

Published Online: 29 NOV 2011

DOI: 10.1002/9781118258415.ch12

Behavioral Finance: Investors, Corporations, and Markets

Behavioral Finance: Investors, Corporations, and Markets

How to Cite

Levy, H. (2010) Cumulative Prospect Theory: Tests Using the Stochastic Dominance Approach, in Behavioral Finance: Investors, Corporations, and Markets (eds H. K. Baker and J. R. Nofsinger), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118258415.ch12

Author Information

  1. Miles Robinson Professor of Finance, Hebrew University, Jerusalem and the Center of Law and Business, Ramat Gan

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 20 SEP 2010

ISBN Information

Print ISBN: 9780470499115

Online ISBN: 9781118258415

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Keywords:

  • cumulative prospect theory;
  • utility paradigm;
  • risk aversion;
  • loss-aversion property;
  • financial practitioners

Summary

This chapter contains sections titled:

  • Introduction

  • Pt, Cpt, and the Stochastic Dominance (Sd) Approach

  • The Experiments and the Results

  • Summary and Conclusions

  • Discussion Questions

  • About the Author