The mean-variance approach is an influential theory of decision under risk proposed by Markowitz (Markowitz, H. 1952 …

(i) judgments of probability, which are assumed to satisfy support theory; and (ii) decisions under risk, which are … assumed to satisfy prospect theory. In two experiments, subjects evaluated uncertain prospects and assessed the probability of … violate the partition inequality implied by the classical theory of decision under uncertainty. …

implausible for finite payoffs levels, expected utility theory—as well as its standard generalizations such as cumulative prospect … theory—are apparently unable to explain a finite willingness-to-pay. The present paper presents first an experimental study …

-dependent expected utility theory and its "more descriptive" version: cumulative prospect theory. The novelty of the method is that it is …

This paper discusses the history and interrelations of three central ideas in preference theory: the independence … multiattribute decisions and consumer theory. Independence was recognized as an important component of decision under risk in the …, 1972.). Conjoint independence for consumer theory was introduced by Sono (Sono, M. 1943. The effect of price changes on the …

theory). It is shown that the deterministic surrogate problem (CE-P) thus obtained, contains a penalty function which … theory is developed by introducing a new certainty equivalent (NCE) concept. Motivation for the NCE and its potential role in … Decision Theory are discussed, as well as mean-variance approximations. …