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Kothiyal, A.(., Spinu, V. and Wakker, P. (2014). An Experimental Test of Prospect Theory for Predicting Choice under Ambiguity Journal of Risk and Uncertainty, 48(1):1--17.


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    Journal of Risk and Uncertainty

Prospect theory is the most popular theory for predicting decisions under risk. This paper investigates its predictive power for decisions under ambiguity, using its specification through the source method. We find that it outperforms its most popular alternatives, including subjective expected utility, Choquet expected utility, and three multiple priors theories: maxmin expected utility, maxmax expected utility, and a-maxmin expected utility. Look Inside Other actions Export citation Register for Journal Updates About This Journal Reprints and Permissions Add to Papers Share