comparePT: Compare choice gambles under Tversky and Kahneman's (1992)...

In gary-au/pt: Computational models for prospect theory and other theories of risky decision making

Description

Compare choice gambles under Tversky and Kahneman's (1992) (Cumulative) prospect theory (PT).

Usage

comparePT(object, prob_weight_for_positive_outcomes,
  prob_weight_for_negative_outcomes, utility, digits)

## S4 method for signature 'Choices'
comparePT(object, prob_weight_for_positive_outcomes,
  prob_weight_for_negative_outcomes, utility, digits)

Arguments

object	Choices, an instance of a Choices class.
prob_weight_for_positive_outcomes	ProbWeight, an instance of a ProbWeight class.
prob_weight_for_negative_outcomes	ProbWeight, an instance of a ProbWeight class.
utility	Utility, an instance of a Utility class.
digits	numeric, the number of digits to display in the output.

References

Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323.

Wakker, P. P. (2010). Prospect theory: For risk and ambiguity. Cambridge, UK: Cambridge University Press.

Examples

# This example creates the two Allais common consequence paradox choices,
# and computes the PT for each gamble in the choices.

choice_ids <- c(1, 1, 1, 1, 2, 2, 2, 2)

gamble_ids <- c(1, 1, 1, 2, 1, 1, 2, 2)

outcome_ids <- c(1, 2, 3, 1, 1, 2, 1, 2)

objective_consequences <- c(2500, 2400, 0, 2400,
	2500, 0, 2400, 0)

probability_strings <- c("0.33", "0.66", "0.01", "1.0",
	"0.33", "0.67", "0.34", "0.66")

my_choices <- Choices(choice_ids=choice_ids,
	gamble_ids=gamble_ids,
	outcome_ids=outcome_ids,
	objective_consequences=objective_consequences,
	probability_strings=probability_strings)

my_choices

tk_1992_utility <- Utility(fun="power",
	par=c(alpha=0.88, beta=0.88, lambda=2.25))

tk_1992_positive_probWeight <-
	ProbWeight(fun=
	"Tversky_Kahneman_1992",
	par=c(alpha=0.61))

tk_1992_negative_probWeight <-
	ProbWeight(fun=
	"Tversky_Kahneman_1992",
	par=c(alpha=0.69))

comparePT(my_choices,
	prob_weight_for_positive_outcomes=
	tk_1992_positive_probWeight,
	prob_weight_for_negative_outcomes=
	tk_1992_negative_probWeight,
	utility=tk_1992_utility,
	digits=4)

gary-au/pt documentation built on May 16, 2019, 5:41 p.m.