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A Note on the Goldstein–Einhorn Probability Weighting Function
von Johann Markus SchauerhuberThis paper presents an exploration of the Goldstein–Einhorn probability weighting function (PWF), an influential model in behavioral decision theory under risk and uncertainty and evaluates its axiomatic derivations, empirical performance, structural flexibility, and applications in cumulative prospect theory (CPT). The investigations also articulate the significance of the Goldstein–Einhorn function in explaining real-world deviations from the expected utility framework.