This article investigates the preservation of multivariate expected utility comparative statics for "smooth" nonexpected utility representations. Specifically, we answer the following question: if an expected utility comparative statics property depends only on preferences over sure prospects,...

This article studies an agent's valuation of the right to trade in a complete contingent claims market. The proposed measure generalizes the Pratt(1964) risk premium, which captures the willingness to pay to replace a given risky wealth prospect with an actuarially equivalent, nonrisky wealth....

This paper explores two axiomatic structures of subjective expected utility assuming a finite state-space and state-dependent, connected, topological outcome-spaces. Building on the work of Karni and Schmeidler (1981) the analytical framework includes, in addition to the preference relation on...

This paper reports the results of experiments testing prevalence of non-neutral ambiguity attitudes and how these attitudes change as a result of interpersonal interactions. To address the first question we conducted experiments involving individual choice between betting on ambiguous and...

In the framework of subjective expected utility theory we develop two distinct procedures for the elicitation of a person's subjective probabilities when the initial endowment is random and unobservable. Procedures of the first kind rely on the boundedness of the utility function to elicit the...

Choice-theoretic definitions of subjective probabilities originated with the work of Ramsey and de Finetti and attained their definitive form in the work of Savage. These probabilities are intended to provide a numerical representation of a decision maker's beliefs regarding the likely...

In this article we study behaviorally consistent stopping rules in an unbounded search from a known distribution with no recall and with positive search cost. We show that if the searcher's preferences are quasi-convex in the probabilities, then behaviorally consistent search strategies in the...

This article generalizes Savage's theory to include event-dependent preferences. The state space is partitioned into finitely many events. The induced.preferences over consequences are assumed independent of the underlying states within, but not across, these events. This results in an...