dominance and classes of utility functions in this general case, and expresses the conditions on bounds in terms of differences …

this theorem to explain the well-known problems of utility and decision theories, such as risk aversion, the underweighting …

coincide with those of economies with subjective expected utility and priors from the agentsʼ multiple prior sets. A specific …

is an equilibrium to exist. The paper then turns to incomplete preferences represented by a family of concave utility …

individual and social level. Individuals and society have possibly incomplete expected utility preferences that are represented … by sets of expected utility functions. Under Pareto indifference, social preferences are represented through a set of …

individual and social level. Individuals and society have possibly incomplete expected utility preferences that are represented … by sets of expected utility functions. Under Pareto indifference, social preferences are represented through a set of …

This chapter of a collective book aims at presenting the basics of decision making under risk. We first define notions … representation) of behavior under risk. We then review the classical model of expected utility due to von Neumann and Morgenstern … andd its main properties. Issues raised by this model are then discussed and two models generalizing the expected utility …

terms of utility units ("utils"). If so, any "rational" investor may be characterized by an elementary utility function … -called canonical utility function- which is such that the partial weak order induced by stochastic dominance over utils is as … comparable prospects, i.e. those which exhibit the same canonical expected utility. This leads to a fully choice-based theory of …