We analyze the preference condition proposed by Richard Gonzalez and George Wu.

We study examples that may help to identify psychological characteristics.

We propose a preference condition for the Goldstein-Einhorn weighting functions..

In 1999, Richard Gonzalez and George Wu proposed an axiomatization for the widely used Goldstein–Einhorn probability weighting functions. Our present study analyzes the preference conditions in the axioms, leading to the discovery of a larger family of weighting functions. Furthermore, we present a new preference condition which is necessary and sufficient for the Goldstein–Einhorn weighting functions.

Preference foundation

Probability weighting function

Cumulative Prospect Theory

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