The Value of Pre-Decision Side Bets for Utility Maximizers

If an alternative is attractive only at certain wealth levels of a decision maker, typically above some critical level, then there will be occasions when it is better to enter into an independent side bet prior to making a decision, than to accept or reject the alternative outright.

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Year of publication:	1988
Authors:	Bell, David E.
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 34.1988, 6, p. 797-800
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	decision analysis \| options \| risk aversion

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.34.6.797 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009203904