Suche Kontakt Impressum

Institut für VWL | UnivIS | ERASMUS | QIS | Site Plan

Christian-Albrechts-Universität zu Kiel

Institut für Volkswirtschaftslehre - Department of Economics
Economics Working Papers

Economics Working Papers: Abstract 2007-01




Enrico Diecidue, Ulrich Schmidt, Horst Zank




Parametric Weighting Functions
Abstract This paper provides behavioral foundations for parametric weighting functions under rank-dependent utility. This is achieved by decomposing the independence axiom of expected utility into separate meaningful properties. These conditions allow us to characterize rank-dependent utility with power and exponential weighting functions. Moreover, by restricting the conditions to subsets of the probability interval, foundations of rank-dependent utility with parametric inverse-S shaped weighting functions are obtained.

Keywords: Comonotonic independence, probability weighting function, preference foundation,rank-dependent utility

JEL classification: D81




weiter zum Full Text

zurück zur Übersicht