Finite-Capacity Prospect Theory: State-Dependent Risk Preferences under Resource, Attention, and Boundary-Risk Constraints

Yining Wu · 2026-05-16

Develops a finite-capacity bridge model treating loss aversion, reference dependence, and probability weighting as state-dependent responses of bounded decision systems with finite resource buffers, attention, memory, precision, update capacity, and boundary-risk tolerance.

@misc{wu2026fdse1,
  author = {Yining Wu},
  title = {Finite-Capacity Prospect Theory: State-Dependent Risk Preferences under Resource, Attention, and Boundary-Risk Constraints},
  year = {2026},
  doi = {10.5281/zenodo.20237306},
}