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Although expected utility (EU) theory is a powerful tool for the analysis of decision under risk, it has long been … generalizations of, EU theory began to appear, most notably prospect theory of Kahneman and Tversky. Dozens of generalized EU models …
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objectively (resp. subjectively) expected value of a von Neumann-Morgenstern utility function. For choice under risk, this implies … weak preference ordering. For choice under risk (resp. uncertainty), preferences are assumed to be represented by the …
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