Extension problem for principles of equivalent utility
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.
KeywordsPrinciple of equivalent utility Extension Insurance premium General linear equation
Mathematics Subject Classification39B12 39B82 91B16
OpenAccessThis article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.