AUTHOR=Takemura Kazuhisa , Murakami Hajime 

TITLE=A Testing Method of Probability Weighting Functions From an Axiomatic Perspective

JOURNAL=Frontiers in Applied Mathematics and Statistics

VOLUME=4

YEAR=2018

URL=https://www.frontiersin.org/journals/applied-mathematics-and-statistics/articles/10.3389/fams.2018.00048

DOI=10.3389/fams.2018.00048

ISSN=2297-4687

ABSTRACT=<p>This study presents a testing approach to examine various models of probability weighting functions that are considered nonlinear functions of probability in behavioral decision theory, such as prospect theory. Although there are several empirical psychometric tests to examine probability weighting functions, there is no concrete method to examine these functions' axiomatic properties. We propose axiomatic properties and a testing method to examine the generalized hyperbolic logarithmic model, power model, and exponential power model of the probability weighting functions, and provide an illustrative example of the testing method.</p>