Testing Prospect Theory Parameters Cover Image

Testing Prospect Theory Parameters
Testing Prospect Theory Parameters

Author(s): Viera Bačová, Kamil Adamík, Vladimír Baláž, Eva Drobná, Katarína Dudeková
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: prospect theory; prospect theory parameters; decisions under risk and uncertainty; behavioural economics

Summary/Abstract: This research study used the original Tversky and Kahneman (1992) methodology to establish values of the key prospect theory parameters in samples of Slovakian construction managers and tertiary students. Median sample values for choice tasks with gains elicited in both samples were fairly similar to those established by the Tversky and Kahneman work (1992). When the same estimation techniques and data types are used, the prospect theory parameter values in Slovakian samples seem fairly similar for standard student populations in developed countries. Based on our results we assume that estimation techniques and data types may be more important for determining parameter values than testing environments and gender or experience of participants.

  • Issue Year: 61/2013
  • Issue No: 07
  • Page Range: 655-671
  • Page Count: 17
  • Language: English