Importance This article discusses the issues of empirical confirmation of the cost function graph that underlies the Prospect theory. Objectives The article aims to offer practical tools for measuring values and how to take them into account when constructing a cost function in Prospect theory, using real market data. Methods For the study, I used the methods of correlation and regression analysis. Results The article presents a designed cost function graph, the constituent elements of which are logically justified in accordance with behavioral finance. Conclusions and Relevance The resulting form of the real cost function graph resembles the indifference curves opened in the nineteenth century. The resulting graphs update the old economic theory and prove the need to confirm the new theories with real empirical evidence. The results obtained can be helpful to financial practitioners, analysts, business valuators, etc.
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