of functions, a utility function and a vagueness function. …

In the 40’s and early 50’ two decision theories were proposed and have since dominated the scene of the fascinating … field of decision-making. In 1944 – when von Neumann and Morgenstern showed that if preferences are consistent with a set of … axioms then it is possible to represent these preference by the expectation of some utility function – Expected Utility …

issued: a strategy implemented by investing the budget plus the selling price is optimal if it maximizes the expected utility … two applications are provided. Different utility functions are used and some qualitative properties of the reservation …

We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a …

expected utility model. In view of this equivalence, the traditional utility-based language for decision making may be … exemplify, we contrast the utility-based viewpoint of prospect theory against the target-based viewpoint and provide an …

This paper describes a parametric family of utility functions for decision analysis. The parameterization is obtained … by embedding the HARA class in a four-parameter representation for the risk aversion function. The resulting utility … utility and prospect theory. We also describe an alternative technique to estimate the four parameters from elicited utilities …

This paper advances an interpretation of Von Neumann–Morgenstern’s expected utility model for preferences over … lotteries which does not require the notion of a cardinal utility over prizes and can be phrased entirely in the language of … probability. According to it, the expected utility of a lottery can be read as the probability that this lottery outperforms …