Guidolin, Massimo; Rinaldi, Francesca - 2009
expected or subjective expected
(SEU) utility maximizers. According to Expected Utility Theory (EU), decision makers choose …. After having derived the probability distribution, SEU theory prescribes to
proceed as under EU. The main difficulty with this …
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Besides simple introspection on the plausibility of EU and SEU as realistic frameworks for decision-making, we have to …