Description Usage Arguments References See Also
The compound invariance probability weighting function is given by
w(p) = (exp(-beta * (-log(x))^alpha)),
where p is the probability constrained by
w(0) = 0, w(1) = 1, 0 < p < 1,
and the two parameters alpha and beta are constrained by
alpha > 0, beta > 0.
1 |
par |
vector, contains the alpha and beta parameters for the pwf |
p |
numeric, the probability |
Prelec, D. (1998). The probability weighting function. Econometrica, 60(3), 497-528.
al-Nowaihi, A., & Dhami, S. (2006). A simple derivation of Prelec's probability weighting function. Journal of Mathematical Psychology, 50(6), 521-524.
p. 179, 207, Wakker, P. P. (2010). Prospect theory: For risk and ambiguity. Cambridge, UK: Cambridge University Press.
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