A stochastic model for assessing the utility of chance

We consider the problem of assessing the utility of chance. One approach is based on offering a decision maker a choice between receiving a fixed chance and a gamble. We investigate theoretical properties of a class of models for the probability of preference of the gamble. We point out an alternative model that models behavior near the boundary more realistically.

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Year of publication:	2014
Authors:	Bose, Sudip
Published in:	Statistics & Probability Letters. - Elsevier, ISSN 0167-7152. - Vol. 93.2014, C, p. 72-77
Publisher:	Elsevier
Subject:	Choice models \| Decision making \| Maximum likelihood \| Probability \| Risk analysis

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010906217