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The correct formula of 1979 prospect theory for multiple outcomes

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  • Peter P. Wakker

    (Erasmus University Rotterdam)

Abstract

Whereas original prospect theory was introduced over 40 years ago, its formula for multi-outcome prospects has never yet been published, resulting in many misunderstandings. This note provides that formula.

Suggested Citation

  • Peter P. Wakker, 2023. "The correct formula of 1979 prospect theory for multiple outcomes," Theory and Decision, Springer, vol. 94(2), pages 183-187, February.
    • Handle: RePEc:kap:theord:v:94:y:2023:i:2:d:10.1007_s11238-022-09885-w
    DOI: 10.1007/s11238-022-09885-w
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