IDEAS home Printed from https://ideas.repec.org/a/vrs/itmasc/v19y2016i1p29-33n7.html
   My bibliography  Save this article

Using Fuzzy Probability Weights in Cumulative Prospect Theory

Author

Listed:
  • Užga-Rebrovs Oļegs

    (Rezekne Academy of Technologies Latvia)

  • Kuļešova Gaļina

    (Riga Technical University Latvia)

Abstract

During the past years, a rapid growth has been seen in the descriptive approaches to decision choice. As opposed to normative expected utility theory, these approaches are based on the subjective perception of probabilities by the individuals, which takes place in real situations of risky choice. The modelling of this kind of perceptions is made on the basis of probability weighting functions. In cumulative prospect theory, which is the focus of this paper, decision prospect outcome weights are calculated using the obtained probability weights. If the value functions are constructed in the sets of positive and negative outcomes, then, based on the outcome value evaluations and outcome decision weights, generalised evaluations of prospect value are calculated, which are the basis for choosing an optimal prospect.

Suggested Citation

  • Užga-Rebrovs Oļegs & Kuļešova Gaļina, 2016. "Using Fuzzy Probability Weights in Cumulative Prospect Theory," Information Technology and Management Science, Sciendo, vol. 19(1), pages 29-33, December.
    • Handle: RePEc:vrs:itmasc:v:19:y:2016:i:1:p:29-33:n:7
    DOI: 10.1515/itms-2016-0007
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/itms-2016-0007
    Download Restriction: no
    File URL: https://libkey.io/10.1515/itms-2016-0007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:itmasc:v:19:y:2016:i:1:p:29-33:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.