We present a new theory of decision under uncertainty: third-generation prospect theory (PT
3 ). This retains the predictive power of previous versions of prospect theory, but extends …

Empirical research has shown that inexperienced fund managers yield significantly higher
returns than their more experienced colleagues. If the portfolios of inexperienced are not …

A behavioral definition of loss aversion is proposed and its implications for original and
cumulative prospect theory are analyzed. Original prospect theory is in agreement with the new …

This paper characterizes the conditions for strong risk aversion and second-order stochastic
dominance for cumulative prospect theory. Strong risk aversion implies a convex weighting …

Experiments on choice under risk typically involve multiple decisions by individual subjects.
The choice of mechanism for selecting decision(s) for payoff is an essential design feature …

This paper presents an online-experiment on overconfidence in the context of financial
markets. Our subject pool consists of institutional investors, investment advisors and individual …

Background Heart failure can result from a variety of causes, including ischemic, hypertensive,
toxic, and inflammatory heart disease. However, the cellular mechanisms responsible for …

Prospect theory is currently the main descriptive theory of decision under uncertainty. It
generalizes expected utility by introducing nonlinear decision weighting and loss aversion. A …

The utility of gambling, which entails an intrinsic utility or disutility of risk, has been alluded
to in the economics literature for over a century. This paper demonstrates that any utility of …

In human and experimental models of heart failure, sarcoplasmic reticulum Ca 2+ ATPase (SERCA2a)
activity is decreased, resulting in abnormal calcium handling. The disturbances in …