Advances in Decision Sciences
Volume 2010 (2010), Article ID 302895, 8 pages
Research Article

Segregation and Integration: A Study of the Behaviors of Investors with Extended Value Functions

1Department of Economics, University of Montevideo, Uruguay
2Department of Economics, Hong Kong Baptist University, Hong Kong

Received 26 March 2010; Accepted 24 May 2010

Academic Editor: Chenghu Ma

Copyright © 2010 Martin Egozcue and Wing-Keung Wong. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper extends prospect theory, mental accounting, and the hedonic editing model by developing an analytical theory to explain the behavior of investors with extended value functions in segregating or integrating multiple outcomes when evaluating mental accounting.