Modified Value Function Based on Mental Account

摘要：

Depending on the prospect theory,the curve features of value function change with humans risk attitude. But,through experiments,it is verified that the wealth level of a decision maker influences his value estimation and behaviours of decision-making under uncertain circumstances. In this paper,the endurable Maximum Loss Value (MLV),which means the amount of the maximum loss in a mental account can endure,is regarded as the measurement of the decision-makers risk-avoiding attitude to some extend and is used to qualify the code of the original value function. Hereafter,we use relatively coding method to construct the value function,which is called decision value function,under uncertain circumstances. It is found that the modified value function model which is amended by relative code well explains the experimental results of decisions under uncertainty. General speaking,the modified model has better unity and stability.

关键词： Prospect Theory Mental Account Value Function Relative Code

作者: Yulei Rao Lun Zhang Ping Wang

作者单位: School of Business,Central Southern University,Hu Nan,China,410075 School of Transportation,Tongji University,Shanghai,China,200092

会议类型: 国际会议

会议名称: The First International Conference on Management Innovation(ICMI 2007)(管理创新会议)

会议地点: 上海

会议语种:英文

页码: 897-903

在线出版日期: 2007-06-04（万方平台首次上网日期，不代表论文的发表时间）