Suppose you must choose between two pieces of information: A and B. In the absence of cost, you would prefer to obtain A rather than B, and in fact would be willing to take more risk to obtain A than B. Nevertheless, you would pay more money for B than for A. Are your preferences consistent with...

Empirically observed violations of traditional expected utility theory have prompted several new theories, putting the future of decision analysis at the crossroads. This essay describes the current status of the literature through selected examples of decision making scenarios. It concludes...