arXiv AI By Rui Wang, Qihan Lin, Jiayu Liu, Qing Zong, Tianshi Zheng, Dadi Guo, Haochen Shi, Peixuan Han, Weiqi Wang, Yangqiu Song

Rethinking Prospect Theory for LLMs: Revealing the Instability of Decision-Making under Epistemic Uncertainty

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arXiv:2508. 08992v4 Announce Type: replace Abstract: Real-world decision-making often involves uncertainty expressed in linguistic rather than numerical terms, and Prospect Theory (PT) provides a classic framework for modeling human behavior under such uncertainty.

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