Scale Invariance of Principle of Equivalent Utility under Cumulative Prospect Theory |
| J. Chudziak a, M. Halicki b, S. Wójcik c
aFaculty of Mathematics and Natural Sciences, University of Rzeszów, Prof. St. Pigonia 1, 35-310 Rzeszów, Poland bDepartment of Regional Politics and Food Economy, University of Rzeszów, Ćwiklińskiej 2, 35-601 Rzeszów, Poland cStatistical Office in Rzeszów, Jana III Sobieskiego 10, 35-959 Rzeszów, Poland |
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| In 1984 A. Reich proved that under Expected Utility Theory, a scale invariance of the Principle of Equivalent Utility just for two particular values of parameters implies its scale invariance. In this paper, we extend this result onto the Principle of Equivalent Utility under Cumulative Prospect Theory. |
DOI: 10.12693/APhysPolA.127.A-29 PACS numbers: 89.65.Gh |