Abstract
We prove that, under the Cumulative Prospect Theory, every principle of equivalent utility, defined on a family of ternary risks, possesses a unique extension to the family of all risks.
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Dedicated to Professor Karol Baron on the occasion of his 70-th birthday.
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Chudziak, J. Extension problem for principles of equivalent utility. Aequat. Math. 93, 217–238 (2019). https://doi.org/10.1007/s00010-019-00638-9
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DOI: https://doi.org/10.1007/s00010-019-00638-9