Endogenizing Prospect Theory’s Reference Point. by Ulrich Schmidt and Horst Zank. Professor : Soe-Tsyr , Yuan Presenter : Sherry. Outline. Abstract Introduction Prospect Theory Function Endogenous Prospect Theory What is “Preference” Main condition in paper Conclusion .
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
by Ulrich Schmidt and Horst Zank
Professor : Soe-Tsyr, Yuan
Presenter : Sherry
whenever A > B and B > C, then also A > C
whenever A ≥ B and B ≥ C, then also A ≥ C
whenever A = B and B = C, then also A = C.
… represent all of possible results;
represent the probability of all of the results;
is value function, and it means the relatively value in the decision-maker’s mind;
is probability weighting function, and it means the reaction of most people face probability.
Such a finding is in agreement with risk aversion in the sense of diminishing marginal utility for increments in outcomes.
This latter finding is in agreement with risk seeking in the sense of diminishing marginal utility for decrements in outcomes.
Apply Media Industry
This way can’t aim the individual’s behavior to design the contents.
NO. 1 Media Platform
news on demand
Detect every user’s current reference point, and evaluate the utilize value to move it to the best one.
When every user have good behavior in media domain, then the media industry will be great.