Prospect theory maintains that humans, ... The theory states that investors value gains and losses differently, prioritizing avoidance of risk. In the context of investing, ...

they devised a new measurement of cross-sectional prospect theory value (CSPTV) to enable cross-sectional comparison among stocks, compared with the existing prospect theory value (PTV ...

This paper provides a theoretical rationale for three experimental results of Prospect Theory: risk preferences are over gains and losses, loss aversion and diminishing sensitivity. We consider a ...