The most commonly employed decision making paradigms are expected utility, prospect theory and regret theory. We examine the simple heuristic of maximizing the probability of being ahead, which in some natural economic situations may be in contradiction to all three of the above fundamental...

This paper shows how de Finetti's book-making principle, commonly used to justify additive subjective probabilities, can be modified to agree with some nonexpected utility models. More precisely, a new foundation of the rank-dependent models is presented that is based on a comonotonic extension...

We propose a new adaptive procedure for the measurement of decision models. Our procedure bounds the function of the decision model, sequentially halves the maximal distance between its bounds, and incrementally restricts the feasible space of associated parameters. It relies on approximating...