and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In … contrast to earlier approaches with models that aimed at separating riskless and risky utility, CT does not violate basic … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such … long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter …

an ordinal one, when defining suitable approximations to expected utility values. Contrary to the standard literature … directly from the disconnectedness of the range of the utility functions. Conditions for the existence of minimal errors are … evaluation for two or more different prospects with the same expected utility value. As a consequence, a rational decision maker …