Search Results - subject:"Rank dependent expected utility"

Allais, Ellsberg, and preferences for Hedging

Deany, Mark; Ortolevaz, Pietro - 2012

We study the relation between ambiguity aversion and the Allais paradox. To this end, we introduce a novel definition of hedging which applies to objective lotteries as well as to uncertain acts, and we use it to define a novel axiom that captures a preference for hedging which generalizes the...

Persistent link: https://www.econbiz.de/10010284079

Allais, Ellsberg, and Preferences for Hedging

Dean, Mark; Ortoleva, Pietro - Brown University, Department of Economics - 2012

We study the relation between ambiguity aversion and the Allais paradox. To this end, we introduce a novel denition of hedging which applies to objective lotteries as well as to uncertain acts, and we use it to dene a novel axiom that captures a preference for hedging which generalizes the one...

Persistent link: https://www.econbiz.de/10011196608

Assessing Multiple Prior Models of Behaviour under Ambiguity

Conte, Anna; Hey, John D. - Department of Economics and Related Studies, University … - 2012

Expected Utility, 54% with the Smooth Model (of Klibanoff et al, 2005), 12% with Rank Dependent Expected Utility and 9% with …

Persistent link: https://www.econbiz.de/10009393736

Risk aversion in medical decision making: a survey

Chicaíza, Liliana; García, Mario; Romano, Giancarlo - In: Lecturas de Economía (2011) 75, pp. 163-185

Expected Utility and Rank Dependent Expected Utility theories, and the methodologies for measuring risk aversion and its …

Persistent link: https://www.econbiz.de/10010902342

Stochastic dominance with respect to a capacity and risk measures

Grigorova, Miryana - HAL - 2011

Pursuing our previous work in which the classical notion of increasing convex stochastic dominance relation with respect to a probability has been extended to the case of a normalised monotone (but not necessarily additive) set function also called a capacity, the present paper gives a...

Persistent link: https://www.econbiz.de/10009368022

The Distorted Theory of Rank-Dependent Expected Utility

Huang, Hui; Zhang, Shunming - In: Annals of Economics and Finance 12 (2011) 2, pp. 233-263

This paper re-examines the rank-dependent expected utility theory. Firstly, we follow Quiggin's assumption (Quiggin … 1982) to deduce the rank-dependent expected utility formula over lotteries and hence extend it to the case of general … independence axiom and then to prove the representation theorem of rank-dependent expected utility. Finally, we make direct use of …

Persistent link: https://www.econbiz.de/10009278161

The Explanatory and Predictive Power of Non Two-Stage-Probability Theories of Decision Making Under Ambiguity

Pace, Noemi; Hey, John D - Dipartimento di Economia, Università Ca' Foscari Venezia - 2011

Representing ambiguity in the laboratory using a Bingo Blower (which is transparent and not manipulable) and asking the subjects a series of allocation questions (which are more efficient than pairwise choice questions), we obtain data from which we can estimate by maximum likelihood methods...

Persistent link: https://www.econbiz.de/10009319873

Pessimism, Optimism and Credit Rationing

Arcand, Jean-Louis - HAL - 2011

necessarily carry over to the case where the agents' preferences can be described by rank-dependent expected utility (RDEU). In …

Persistent link: https://www.econbiz.de/10008836792

The Behavioral Economics of Crime and Punishment

Dhami, Sanjit; al-Nowaihi, Ali - Department of Economics, Leicester University - 2010

welfare implications under expected utility. We show that BP also holds under rank dependent expected utility and cumulative …

Persistent link: https://www.econbiz.de/10008457272

Prevention of diseases and preventive co-payment rate

Maréchal, François - In: Economics Bulletin 29 (2009) 3, pp. 2333-2342

In this paper, we use the Rank-Dependent Expected-Utility (RDEU) model to analyse the preventive behaviour of an …

Persistent link: https://www.econbiz.de/10008562930