VARIABLES
Values and Expectancies
DOMAINS:
Contributors: name list here
DEVELOPERS
A. Tversky & D. Kahneman 1992
BACKGROUND
"Often described as one of the leading theories of decision (e.g., Fennema & Wakker, 1997; Levy, 1992), CPT seeks to describe choice under uncertainty by reconsidering how value is derived, as well as how expectancy should be transformed." (Steel & Konig: 884)
"First, values are based on outcomes that are defined as losses and gains in reference to some status quo or baseline. These outcomes are transformed following a function that is concave for gains, convex for losses, and steeper for losses than for gains. In other words, losses loom larger than gains." (Steel & Konig: 884)
"Second, probability (i.e., expectancy) is also transformed following a function that has both convex and concave segments. Lower probabilities tend to be convex (i.e., overweighted), whereas higher probabilities tend to be concave (i.e., underweighted)." (Steel & Konig: 884
REFERENCES ~ Coding Spreadsheet - Web View