Loss Asymmetry Not Captured by Linear Field

Storyboard

Discrepancy between the expected response under a simple linear field and the real response deformed by Prospect Theory (E03). It includes the percentage relative error and the materiality criterion (when the linear model is still acceptable), two outputs that allow you to calibrate when it is worth using the full Prospect Theory model in the simulator.

>Model

ID:('ky', 1603)


Model Structure

Description

ID:(0, 1603)


gphysics.net - Dr. Willy H. Gerber
Palos Verdes, Costa de Corral, Región de los Rios, Chile