This paper investigates a decision-making process involving both risk and uncertainty. The decision-maker is supposed to split events between "familiar", and "unfamiliar" ones, and she/he is assumed to behave differently with respect to them. In particular, it is showed that the DM overweighs...

This paper investigates a decision making process involving both risk and uncertainty. The decision-maker is imagined to have a taxonomy of events in 'risky', 'catastrophic' and 'very favorable' and that she/he behaves differently with respect to them. A representation theorem, which...

This paper discusses the evolution of decision theory after Savage's Foundations. Two developments are examined. First, it is presented the rationale of Shackle's proposal to abandon probabilistic decision making. Second, it is discussed the axiomatisation provided by the non-additive...