Cerreia-Vioglio, Simone; Dillenberger, David; Ortoleva, … - Department of Economics, University of Pennsylvania - 2014
Many violations of the Independence axiom of Expected Utility can be traced to subjects' attraction to risk …-free prospects. The key axiom in this paper, Negative Certainty Independence (Dillenberger, 2010), formalizes this tendency. Our main … result is a utility representation of all preferences over monetary lotteries that satisfy Negative Certainty Independence …