AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
3min chapter
Pim van Vliet – A Detailed Dive into Low Volatility Investing (S6E10)
Flirting with Models
The Importance of Expected Utility Theory in Asset Pricing Theory
In 2013 you co-authored a rather heady paper titled violations of cumulative prospect theory in mixed gambles with moderate probabilities. Your core takeaway was that prospect theory only supported when experiments are performed with really extreme examples not necessarily supported with more moderated examples. What do you think this takeaway is really important and what are the implications for asset pricing theory? yeah so good prospect theory has been the darling for decades basically wanting to replace utility theory but we're more rational in that sense than a prospect theory wants us to believe, he says.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode