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Methods for determining the form of utilities are needed for the implementation of utility theory in specific decisions. An important step forward was achieved when utility theorists characterized useful parametric families of utilities, and simplifying decompositions of multiattribute...
Persistent link: https://www.econbiz.de/10009460034
This paper proposes a new method, the (gamble-)tradeoff method, for eliciting utilities in decision under risk or uncertainty. The elicitation of utilities, to be used in the expected utility criterion, turns out to be possible even if probabilities are ambiguous or unknown. A disadvantage of...
Persistent link: https://www.econbiz.de/10009460035
This paper provides a state-dependent extension of Savage's expected utility when outcomes are real-valued (money, distance, etc.) and utility is increasing (or, equivalently, the "loss function" is decreasing). The first novelty concerns the very definition of the functional, which is not an...
Persistent link: https://www.econbiz.de/10009460391