File talk:Value function in Prospect Theory Graph.jpg
Jump to navigation
Jump to search
This depiction of the value function is incorrect. Loss aversion necessarily manifests itself in a "kink" at the center of the diagram (see Section 8.4 in Wakker, Prospect Theory, Cambridge University Press 2010), which is not shown in this diagram.
– Not really: in the original formulation, the slope of the curve at zero is infinite. The slope at ±epsilon is indeed usually larger in the negative area than in the positive, but this is the case in this figure. 93.109.241.222 06:38, 19 September 2021 (UTC)
