This book is written for those seeking a decision theory appropriate for use in serious choices such as insurance. It … standard decision theories like expected utility or cumulative prospect theory. …This book is written for those seeking a decision theory appropriate for use in serious choices such as insurance. It …

extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the … principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals … individuals, teams accumulate significantly more expected value at a significantly lower total risk (measured in SD). We introduce …