Y. Cho et al., TESTS OF ASSUMPTIONS ABOUT THE JOINT RECEIPT OF GAMBLES IN RANK-DEPENDENT AND SIGN-DEPENDENT UTILITY-THEORY, Journal of experimental psychology. Human perception and performance, 20(5), 1994, pp. 931-943
A rank- and sign-dependent utility theory is based on an operation of
joint receipt of 2 independent gambles and 3 assumptions regarding the
operation (R. D. Luce, 1992). The authors tested these 3 assumptions-
segregation, duplex decomposition, and the additivity of certainty equ
ivalents over joint receipt-using both judged and choice certainty equ
ivalents (CEs). Median choice CEs provided support for both segregatio
n and duplex decomposition but little support for additivity in gains
or in losses, whereas median judged CEs also failed to support segrega
tion. The latter failure appears to result from some subjects misunder
standing the instructions.