Prospect Theory in Large Language Models: A Meta-Analysis of Loss Aversion, Diminishing Sensitivity, and Probability Weighting.

arXiv:2610.33103v1 Announce Type: new Abstract: Prospect theory splits risky choice into three parts: loss aversion, measured by the relative weight of losses to gains, $\lambda$ (e.g., $\lambda = 2$ implies that losses weigh twice as much as gains), diminishi