| Article ID: | iaor20081038 |
| Country: | United States |
| Volume: | 52 |
| Issue: | 8 |
| Start Page Number: | 1288 |
| End Page Number: | 1290 |
| Publication Date: | Aug 2006 |
| Journal: | Management Science |
| Authors: | Post Thierry, Baltussen Guido, Vliet Pim Van |
| Keywords: | prospect theory |
In a classroom choice experiment with mixed gambles and moderate probabilities, we find severe violations of cumulative prospect theory and of Markowitz stochastic dominance. Our results shed new light on the exchange between Levy & Levy and Wakker in this journal.