Based on Partial Distribution, we put forward a PD-utility function of prospect behavior for the first time, the profiting utility function and losing utility function. The PD-utility function can reflect sufficiently the human’s risk preferences properties to profiting or losing, describe and bring to light availably the important relations between profiting utility and losing utility, and interpret many conclusions in Daniel Kahneman’s prospect theory in analytic way.
Prof. Feng Dai, Prof. Song-tao Wu, Prof. Ya-jun Zhuang
Department of Management Science, Zhengzhou Information Engineering University
Summary:
•Partial Distribution and the method of measuring RL
•The prospect utility function and analysis of risk preference
•Analysis of Pd-Utility Function Characteristics
•Comparison Analysis between losing and profiting utility
•Analytic essential indexes about RP