Less Wrong is a community blog devoted to refining the art of human rationality. Please visit our About page for more information.

Unnamed comments on Prospect Theory: A Framework for Understanding Cognitive Biases - Less Wrong

66 Post author: Yvain 10 July 2011 05:20AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (46)

You are viewing a single comment's thread.

Comment author: Unnamed 11 July 2011 03:29:49AM 7 points [-]

It can be interesting to look at prospect theory curves that are based on experimental data. Here are the best fit curves for 10 subjects in one study, Gonzalez & Wu (1999), for the value function for gains (v) and the probability weighting function (w). Each subject in the study made 165 (hypothetical) decisions about gambles with various possible outcomes and probabilities, in the domain of gains only (no losses).

Comment author: Vaniver 11 July 2011 04:43:09AM 0 points [-]

Especially when you compare subject 9 to everyone else.