Decision weights are an important component of decision making with uncertainty and risk. To better explain these decision weights, a two-stage approach has been proposed by Tversky and Fox. We proposed a three-stage framing approach by allowing the probability weighing function to depend on the type of uncertainty to weighing under gain and loss. Using this more general approach, decision makers can get more accurate decision weight.
Wei ZHOU
, Ming Zhe WANG. , {{custom_author.name_en}}.
Weighting Risk and Uncertainty Based on Prospect Theory. Systems Engineering - Theory & Practice, 2005, 25(2): 74-78 https://doi.org/10.12011/1000-6788(2005)2-74