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  1. Prospect Theory: For Risk and Ambiguity.Peter P. Wakker - 2010 - Cambridge University Press.
    Prospect Theory: For Risk and Ambiguity, provides a comprehensive and accessible textbook treatment of the way decisions are made both when we have the statistical probabilities associated with uncertain future events and when we lack them. The book presents models, primarily prospect theory, that are both tractable and psychologically realistic. A method of presentation is chosen that makes the empirical meaning of each theoretical model completely transparent. Prospect theory has many applications in a wide variety of disciplines. The material in (...)
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  2.  6
    On the Composition of Risk Preference and Belief.Peter P. Wakker - 2004 - Psychological Review 111 (1):236-241.
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  3. Prospect-Theory’s Diminishing Sensitivity Versus Economics’ Intrinsic Utility of Money: How the Introduction of the Euro Can Be Used to Disentangle the Two Empirically. [REVIEW]Peter P. Wakker, Veronika Köbberling & Christiane Schwieren - 2007 - Theory and Decision 63 (3):205-231.
    The introduction of the euro gave a unique opportunity to empirically disentangle two components of utility: intrinsic value, a rational component central in economics, and the numerosity effect (going by numbers while ignoring units), a descriptive and irrational component central in prospect theory and underlying the money illusion. We measured relative risk aversion in Belgium before and after the introduction of the euro, and could consider changes in intrinsic value while keeping numbers constant, and changes in numbers while keeping intrinsic (...)
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    If Nudge Cannot Be Applied: A Litmus Test of the Readers’ Stance on Paternalism. [REVIEW]Chen Li, Zhihua Li & Peter P. Wakker - 2014 - Theory and Decision 76 (3):297-315.
    A central question in many debates on paternalism is whether a decision analyst can ever go against the stated preference of a client, even if merely intending to improve the decisions for the client. Using four gedanken-experiments, this paper shows that this central question, so cleverly and aptly avoided by libertarian paternalism (nudge), cannot always be avoided. The four thought experiments, while purely hypothetical, serve to raise and specify the critical arguments in a maximally clear and pure manner. The first (...)
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    Jaffray’s Ideas on Ambiguity.Peter P. Wakker - 2011 - Theory and Decision 71 (1):11-22.
    This paper discusses Jean-Yves Jaffray’s ideas on ambiguity and the views underlying his ideas. His models, developed 20 years ago, provide the most tractable separation of risk attitudes, ambiguity attitudes, and ambiguity beliefs available in the literature today.
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    The Likelihood Method for Decision Under Uncertainty.Mohammed Abdellaoui & Peter P. Wakker - 2005 - Theory and Decision 58 (1):3-76.
    This paper introduces the likelihood method for decision under uncertainty. The method allows the quantitative determination of subjective beliefs or decision weights without invoking additional separability conditions, and generalizes the Savage–de Finetti betting method. It is applied to a number of popular models for decision under uncertainty. In each case, preference foundations result from the requirement that no inconsistencies are to be revealed by the version of the likelihood method appropriate for the model considered. A unified treatment of subjective decision (...)
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    Nash Was a First to Axiomatize Expected Utility.Han Bleichrodt, Chen Li, Ivan Moscati & Peter P. Wakker - 2016 - Theory and Decision 81 (3):309-312.
    Nash is famous for many inventions, but it is less known that he, simultaneously with Marschak, also was the first to axiomatize expected utility for risk. In particular, these authors were the first to state the independence condition, a condition that should have been but was not stated by von Neumann and Morgenstern. Marschak’s paper resulted from interactions with several people at the Cowles Commission. We document unique letters and personal communications with Nash, Samuelson, Arrow, Dalkey, and others, making plausible (...)
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