Search Results - subject:"Utility theory"

Evolution of non-expected utility preferences

von Widekind, Sven - 2005

We investigate an extension of Dekel, Ely and Yilankaya's (2004) treatment of the evolution of preference to more general, possibly non-expected utility preferences. Along the lines of their analysis we consider a population of types that is repeatedly and randomly matched to play the mixed...

Persistent link: https://www.econbiz.de/10010272582

Decision-Theoretic Planning under Risk-Sensitive Planning Objectives

Liu, Yaxin - 2005

Risk attitudes are important for human decision making, especially in scenarios where huge wins or losses are possible, as exemplified by planetary rover navigation, oilspill response, and business applications. Decision-theoretic planners therefore need to take risk aspects into account to...

Persistent link: https://www.econbiz.de/10009476107

Distortion of Outcome and Probability Information in Risky Decisions

DeKay, Michael L.; Patiño-Echeverri, Dalia; Fischbeck, … - 2005

Substantial evidence indicates that information is distorted during decision making. However, no studies have assessed the distortion of outcome and probability information in risky decisions or the effects of ambiguity on information distortion. This paper reports two studies involving six...

Persistent link: https://www.econbiz.de/10009441297

Insurance and Probability Weighting Functions

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

economics; Rank de- pendent utility theory; Prospect theory; Insurance; St. Petersburg paradox. JEL Classification: C60(General … Utility Theory (EU). For example, it is a standard theorem of EU that people will insure fully if, and only if, they face … 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

Why Do People Pay Taxes? Prospect Theory Versus Expected Utility Theory

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

Tax evasion analysis is typically based on an expected utility theory (EUT) framework. However, this leads to several … DEPARTMENT OF ECONOMICS WHY DO PEOPLE PAY TAXES? PROSPECT THEORY VERSUS EXPECTED UTILITY THEORY …/23 July 2005 Updated August 2006 Why Do People Pay Taxes? Prospect Theory Versus Expected Utility Theory ∗ Sanjit Dhami …

Persistent link: https://www.econbiz.de/10005422712

Dynamic portfolio selection in a dual expected utility theory framework

Cenci, Marisa; Corradini, Massimiliano; Gheno, Andrea - Dipartimento di Economia, Università degli Studi di Roma 3 - 2005

In this paper the dynamic portfolio selection problem is studied for the first time in a dual utility theory framework …

Persistent link: https://www.econbiz.de/10005405038

MCDM Farm System Analysis for Public Management of Irrigated Agriculture

Gomez-Limon, Jose Antonio; Berbel, Julio; Arriaza … - European Association of Agricultural Economists - EAAE - 2005

In this paper we present a methodology within the multi-criteria paradigm to assist policy decision-making on water management for irrigation. In order to predict farmers' response to policy changes a separate multi-attribute utility function for each homogeneous group, attained applying cluster...

Persistent link: https://www.econbiz.de/10004979603

The Precautionary Principle in Environmental Policy and the Theory of Choice under Uncertainty

Quiggin, John - School of Economics, University of Queensland - 2005

The precautionary principle, presented as a guide to environmental policy decisions in the presence of uncertainty, has been the subject of vigorous debate. However, the has generally not been discussed in relation to formal theories of choice under uncertainty developed as generalizations of...

Persistent link: https://www.econbiz.de/10010910989

Rethinking Risk: Aspiration as Pure Risk

Davies, G.B. - Faculty of Economics, University of Cambridge - 2005

There exists no satisfactory theory of risk in current normative decision theories. Notions based on utility curvature, loss aversion and probability weighting are derivative, cannot be applied to non-numerical consequences, and are not psychologically intuitive. I develop a Pure Risk theory...

Persistent link: https://www.econbiz.de/10005647474

Evolution of non-expected utility preferences

Widekind, Sven von - Institut für Mathematische Wirtschaftsforschung, … - 2005

We investigate an extension of Dekel, Ely and Yilankaya's (2004) treatment of the evolution of preference to more general, possibly nonexpected utility preferences. Along the lines of their analysis we consider a population of types that is repeatedly and randomly matched to play the mixed...

Persistent link: https://www.econbiz.de/10005687751