AUTHOR=Takemura Kazuhisa, Murakami Hajime
TITLE=A Testing Method of Probability Weighting Functions From an Axiomatic Perspective
JOURNAL=Frontiers in Applied Mathematics and Statistics
VOLUME=4
YEAR=2018
PAGES=48
URL=https://www.frontiersin.org/article/10.3389/fams.2018.00048
DOI=10.3389/fams.2018.00048
ISSN=2297-4687
ABSTRACT=This study presents a testing approach to examine various models of probability weighting functions that are considered nonlinear functions of probability in behavioral decision theory, such as prospect theory. Although there are several empirical psychometric tests to examine probability weighting functions, there is no concrete method to examine these functions' axiomatic properties. We propose axiomatic properties and a testing method to examine the generalized hyperbolic logarithmic model, power model, and exponential power model of the probability weighting functions, and provide an illustrative example of the testing method.