We propose a new theory of choice between lotteries, which combines an 'economic' view of decision making - based on a … rational, though incomplete, ordering - with a 'psychological' view - based on heuristics. This theory can explain observed … violations of EU theory, namely all cyclical patterns of choice as well as violations of independence. …

We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a … rational, though incomplete, ordering - with a 'psychological’ view - based on heuristics. This theory can explain observed … violations of EU theory, namely all cyclical patterns of choice as well as violations of independence. …

they are really the most challenging ones for conventional theory. New developments are emerging both at the theoretical …