Gambling and Decision-Making: Risk and Uncertainty

'A New Idea Does Not Come Forth in Its Mature Scientific Form. It Contains Logical Ambiguities Or Errors; the Evidence on Which It Rests Is Incomplete Or Indecisive; and Its Domain of Application Is Exaggerated in Certain Directions and Overlooked in Others', Wrote Stigler (1965, P.14) in One of His Essays on the History of Economics. These Sentence Summarize the Justification for Writing This Paper. the Essential Features of the Model of Risk-Taking Discussed Here Have Been Presented in Previous Work. However, Approximations Were Made Details Were Omitted and Some Important Implications Were Overlooked in Those Studies. This Paper Presents the Corections, Puts the Model on Sounder Footing and Compares It with Other Models That Try to Explain Decision-Taking Behavior, a Comparison That Was Only Partially Done in the Earlier Works.