Schmidt, Ulrich; Starmer, Chris; Sugden, Robert - In: Journal of Risk and Uncertainty 36 (2008) 3, pp. 203-223
We present a new theory of decision under uncertainty: third-generation prospect theory (PT3). This retains the … predictive power of previous versions of prospect theory, but extends that theory by allowing reference points to be uncertain … of stochastic dominance. The theory predicts the observed tendency for willingness-to-accept valuations of lotteries to …