Search Results - subject:"expected utility theory"

Kahneman and Tversky and the Origin of Behavioral Economics

Heukelom, Floris - 2007

expected utility theory (EUT). Bernoulli’s work is taken up by psychophysics which in turn plays an important role in the …

Persistent link: https://www.econbiz.de/10010325520

Stochastic Utility Theorem

Blavatskyy, Pavlo R. - Institut für Volkswirtschaftslehre, … - 2007

This paper analyzes individual decision making under risk. It is assumed that an individual does not have a preference relation on the set of risky lotteries. Instead, an individual possesses a probability measure that captures the likelihood of one lottery being chosen over the other. Choice...

Persistent link: https://www.econbiz.de/10005463515

Affective Decision Making: A Behavioral Theory of Choice

Bracha, Anat; Brown, Donald J. - Cowles Foundation for Research in Economics, Yale University - 2007

. It generalizes expected utility theory by positing the existence of two cognitive processes -- the "rational" and the …

Persistent link: https://www.econbiz.de/10005463861

What Simon says

Heukelom, Floris - Tinbergen Instituut - 2007

This paper provides an overview of the work of Herbert Simon and his ideas about rational decision making. By his own standards, Simon is an economist who works in the tradition of Adam Smith and Alfred Marshall. The central theme in Simon’s research is how human beings organize themselves in...

Persistent link: https://www.econbiz.de/10011256722

Doubts about the descriptive validity of the expected utility theory

Skořepa, Michal - In: Politická ekonomie 2007 (2007) 1, pp. 106-120

the basics of expected utility theory, the key pieces of evidence are described which showed that under certain …

Persistent link: https://www.econbiz.de/10005036591

Models of Stochastic Choice and Decision Theories: Why Both are Important for Analyzing Decisions

Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2007

Economic research offers two traditional ways of analyzing decision making under risk. One option is to compare the goodness of fit of different decision theories using the same model of stochastic choice. An alternative way is to vary models of stochastic choice combining them with only one or...

Persistent link: https://www.econbiz.de/10005628002

Preferences for Shifts in Probabilities and Expected Utility Theory

Cantalá, David - In: Estudios Económicos 22 (2007) 1, pp. 99-109

We translate preferences over lotteries into preferences over “shifts in probabilities”. We define the independence axiom for such preferences. Next we construct and expected utility function to represent the preferences and present the corresponding additive geometry.

Persistent link: https://www.econbiz.de/10005628729

Teorie očekávaného užitku versus kumulativní prospektová teorie: empirický pohled (available in Czech only)

Skořepa, Michal - In: Czech Economic Review 1 (2007) 2, pp. 180-195

This paper pits expected utility theory and cumulative prospect theory against each other as regards their descriptive … either. It is concluded that expected utility theory is likeyl to remain the core instrument for modeling human decision … utility theory is not descriptively valid. The most promising alternative, cumulative prospect theory, is then presented in …

Persistent link: https://www.econbiz.de/10005698647

Poptávková funkce na trhu s pojištěním: porovnání maximalizace paretovské pravděpodobnosti přežití s teorií EUT von Neumanna a Morgensterna a s prospektovou teorií Kahnemana a Tverského (available in Czech only)

Hlavacek, Jiri; Hlaváček, Michal - In: Czech Economic Review 1 (2007) 2, pp. 116-134

other models: the expected-utility theory (von Neumann, Morgenstern) and the asymmetric value function (Kahneman, Tversky …

Persistent link: https://www.econbiz.de/10005698651

Kahneman and Tversky and the Origin of Behavioral Economics

Heukelom, Floris - Tinbergen Institute - 2007

expected utility theory (EUT). Bernoulli’s work is taken up by psychophysics which in turn plays an important role in the …

Persistent link: https://www.econbiz.de/10005137090