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Weitzman, M.L. - Harvard Institute of Economic Research (HIER), … - 1999

of this procedure in terms of a money-metric utility function linked to familiar elements of standard welfare theory. A … explained, and it is indicated why these two principles are important for the theory of national income accounting. …

Persistent link: https://www.econbiz.de/10005245621

Estimating Preferences under Risk: The Case of Racetrack Bettors

Jullien, B.; Salanie, B. - 1997

models. On the other hand, cumulative prospect theory has higher explanatory power. Our preferred estimates suggest a pattern …

Persistent link: https://www.econbiz.de/10005486785

More Pessimism than Greediness: A Characterization of Monotone Risk Aversion in the Rank-Dependant Expected Utility Model

Chateauneuf, A.; Cohen, M.; Meilijson, I. - Centre de recherche de mathématiques et économie … - 1997

We study attitudes towards risk in the Rank Dependent Expected Utility (RDEU) model. This model replaces expected utility by another functional, which is characterised by two functions, a utility function on outcomes in conjunction with a probability-perception function. We use the notion of...

Persistent link: https://www.econbiz.de/10005663598

New Tools to Better Model Behavior Under Risk and UNcertainty: An Oevrview

Chateauneuf, A.; Cohen, M.; Meilijson, I. - Centre de recherche de mathématiques et économie … - 1997

Normative models of behaviour under risk in the framework of expected utility (EU) or under uncertainty in the framework of subjective expected utility (SEU) are very limited. In this survey paper, it is shown that non-expected utility (non-EU) models based on the Choquet integral allow for much...

Persistent link: https://www.econbiz.de/10005663617

Optimal Risk-Sharing Rules and Equilibria With Non-Additive Expected Utility

Chateauneuf, A.; Dana, R.-A; Tallon, J.-M. - Centre de recherche de mathématiques et économie … - 1997

This paper explores the consequences of non-additive expected utility on risk-sharing and equilibrium in a general equilibrium set-up. We establish that convexity of an agent's preferences (or strong uncertainty aversion) is equivalent to the convexity of his capacity and concavity of his...

Persistent link: https://www.econbiz.de/10005776511

An Outcome-Oriented Theory of Choice and Empirical Paradoxes in Expected Utility Theory

Kaneko, F. - Economic Growth Center, Economics Department - 1997

choice set that is a collection of well-defined choice situations. I give a partial axiomatic foundation of the theory. The … theory is applied to explain the well-known paradoxes in expected utility theory. …

Persistent link: https://www.econbiz.de/10005647028

Psychological Expected Utility Theory and Anticipatory Feelings

Caplin, Andrew; Leahy, John - C.V. Starr Center for Applied Economics, Department of … - 1997

We extend expected utility theory to situations in which the prizes incloude feelings about living with uncertainty. We …

Persistent link: https://www.econbiz.de/10005605678

Lotterty Designs to Discriminate between Shackle's Theory. Expected Utility Theory and Non-expected Utility THeories

Ford, J.L.; Ghose, S. - Department of Economics, University of Birmingham - 1998

Shackle's theory of decision-making under uncertainty and the background to it are outlined. Its major prediction about … demonstrated will make it possible to discriminate between Shackle's theory (and its clone, Ford's perspective theory) and non …-expected utility theories. A means for distinguishing between Shackle's theory and perspective theory is noted. …

Persistent link: https://www.econbiz.de/10005357554

Background Risk, Demand for Insurance and Choquet Expected Utility Preferences.

Jeleva, M. - 1998

This article deals with demand for insurance with a background risk in a non-probabilized uncertainty framework where preferences are represented by a non-additive model of decision making. The Choquet expected utility model we use, generalizes expected utility and allows for a separation of the...

Persistent link: https://www.econbiz.de/10005671581