• Home
  • Search
  • Flexible estimation of parametric prospect models using hierarchical bayesian methods
  • https://doi.org/10.1017/eec.2025.10012Copy DOI Icon

Flexible estimation of parametric prospect models using hierarchical bayesian methods

Show More
  • Abstract
  • Literature Map
  • References
  • Similar Papers
Abstract

Abstract In this paper, we present a flexible approach to estimating parametric cumulative Prospect Theory using Hierarchical Bayesian methods. Bayesian methods allow us to include prior knowledge in estimation and heterogeneity in individual responses. The model employs a generalised parametric specification of the value function allowing each individual to be risk-seeking in low-stakes mixed prospects. In addition, it includes parameters accounting for varying levels of model noise across domains (gain, loss, and mixed) and several aspects of lottery design that can influence respondent behaviour. Our results indicate that enhancing value function flexibility leads to improved model performance. Our analysis reveals that choices within the gain domain tend to be more predictable. This implies that respondents find tasks in the gain domain cognitively less challenging in comparison to making choices within the loss and mixed domains.

Similar Papers
  • Research Article
  • Citations75

Accommodating site variation in neuroimaging data using normative and hierarchical Bayesian models

  • Oct 20, 2022
  • NeuroImage
  • Johanna M.M Bayer +8
  • Research Article

Application of Small Area Estimation for Estimation of Sub-District Level Poverty in Bengkulu Province: Comparison of Empirical Best Linear Unbiased Prediction (EBLUP) and Hierarchical Bayesian (HB) Methods

  • Mar 30, 2024
  • Journal of Statistics and Data Science
  • Auliya Yudha Pratama
  • Research Article
  • Citations15

Hierarchies improve individual assessment of temporal discounting behavior.

  • Jul 01, 2020
  • Decision
  • M Fiona Molloy +5
  • Single Report
  • Citations11

Behavioral Welfare Economics and Risk Preferences: A Bayesian Approach

  • Aug 01, 2020
  • National Bureau of Economic Research
  • Xiaoxue Sherry Gao +2
  • Book Chapter
  • Citations33

The Robustness of a Hierarchical Model for Multinomials and Contingency Tables

  • Jan 01, 1983
  • Scientific Inference, Data Analysis, and Robustness
  • I.J Good
  • Research Article
  • Citations15

Estimating prawn abundance and catchability from catch-effort data: comparison of fixed and random effects models using maximum likelihood and hierarchical Bayesian methods

  • Jan 25, 2008
  • Marine and Freshwater Research
  • Shijie Zhou +4
  • Research Article
  • Citations4

Post-hurricane recovery and long-term viability of the Alabama beach mouse

  • Aug 08, 2014
  • Biological Conservation
  • Matthew R Falcy +1
  • Research Article
  • Citations22

Time Trends of Methylmercury in Walleye in Northern Wisconsin: A Hierarchical Bayesian Analysis

  • Jun 05, 2007
  • Environmental Science & Technology
  • Eric R Madsen +1
  • Research Article
  • Citations21

Multi‐view intrinsic low‐rank representation for robust face recognition and clustering

  • May 02, 2021
  • IET Image Processing
  • Zhi‐Yang Wang +5
  • Research Article
  • Citations8

Bayesian hierarchical surplus production model of the common whelk Buccinum undatum in Icelandic waters

  • Jun 08, 2017
  • Fisheries Research
  • Pamela Woods +1
  • Research Article
  • Citations61

Poor-data and data-poor species stock assessment using a Bayesian hierarchical approach

  • Oct 01, 2011
  • Ecological Applications
  • Yan Jiao +3
  • Research Article
  • Citations2

The effects of area-level deprivation on colorectal cancer incidence at the small area-level in Pennsylvania from 2008 to 2017.

  • Aug 01, 2025
  • Cancer epidemiology
  • Ryan Snead +4
  • Research Article
  • Citations20

Health in perspective: framing motivational factors for personal sanitation in urban slums in Nairobi, Kenya, using anchored best–worst scaling

  • Oct 21, 2013
  • Journal of Water, Sanitation and Hygiene for Development
  • Carl Johan Lagerkvist +2
  • Research Article
  • Citations10

A Bayesian analysis of mouse infectivity data to evaluate the effectiveness of using ultraviolet light as a drinking water disinfectant

  • Oct 01, 2005
  • Water Research
  • Song S Qian +2
  • Research Article
  • Citations8

The bivariate combined model for spatial data analysis.

  • Feb 29, 2016
  • Statistics in medicine
  • Thomas Neyens +3
Cactus Communications logo

Copyright 2026 Cactus Communications. All rights reserved.