We introduce range and sign dependent utility, an integrative behavioral model for uncertain cash flows. For gambles played today, the model can be seen as an extension of original prospect theory based on range, rather than rank. For single future payouts, the model agrees with hyperbolic...

We introduce range utility theory, an integrative behavioral model for uncertain cash flows. The model modifies rank dependent utility, by replacing rank principles with range principles, and extends the domain to time. For gambles played in the future, the model generalizes the probability and...

In this paper I analyze operational measure of riskiness defi ned by Foster and Hart (2007). I give simple intuition behind their main result. Then I extend the concept of riskiness measure in two respects - I de fine a generalized riskiness measure based on decreasing absolute risk aversion...

In this paper I show that within expected utility large buying and selling price gap is possible and Rabin (2000) paradox may be resolved if only initial wealth is allowed to be small. It implies giving up the doctrine of consequentialism which may be reduced to requiring initial wealth to be...