Search Results - subject:"Rank dependent utility theory"

Insurance and Probability Weighting Functions

Dhami, Sanjit; al-Nowaihi, Ali - Department of Economics, Leicester University - 2005

her behavior diﬀers significantly between the two cases. 5. Rank dependent utility theory and insurance In this section …, we model the behavior of an individual using rank dependent utility theory (RDU), which we may regard as a conservative … dependent utility theory (RDU), see Quiggin (1982, 1993), and cumulative prospect theory (CP), see Tversky and Kahneman (1992 …

Persistent link: https://www.econbiz.de/10005422703

Dual theory of choice with multivariate risks

Galichon, Alfred; Henry, Marc - In: Journal of Economic Theory 147 (2012) 4, pp. 1501-1516

We propose a multivariate extension of Yaariʼs dual theory of choice under risk. We show that a decision maker with a preference relation on multidimensional prospects that preserves first order stochastic dominance and satisfies comonotonic independence behaves as if evaluating prospects using...

Persistent link: https://www.econbiz.de/10011042936

Loss aversion

Blavatskyy, Pavlo - In: Economic Theory 46 (2011) 1, pp. 127-148

Persistent link: https://www.econbiz.de/10008775598