Question: Reconsider Problem 10.2 and its solution to show that w(p), like the original weighting function of Kahneman and Tversky, is S-shaped, with concave curvature for

Reconsider Problem 10.2 and its solution to show that w(p), like the original weighting function of Kahneman and Tversky, is S-shaped, with concave curvature for small p and convex curvature for large p.

Problem 10.2

Prelec (1998) suggested the alternative probability weighting function

with 0

w(p) = e-(-logp)

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