This paper presents results of a study that has shed new light on the shape of indifference curves in the Marschak-Machina triangle. The most important observation concerns jumps in indifference curves at the triangle legs towards the triangle origin. Such jumps, however, do not appear at the...

The paper presents a method for lottery valuation using the relative utility function. This function was presented by Kontek (2009) as 'the aspiration function' and resembles the utility curve proposed by Markowitz (1952A). The paper discusses lotteries with discrete and continuous outcome...

This paper introduces the concept of range-dependent utility. Instead of reference dependence which evaluates outcomes relative to some reference point, we postulate dependence on a given lottery (set of lotteries) outcomes range. In this way the decision maker is a fully rational expected...