theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional … theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and … extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for …

270 9.5 Computation of the optimal alternative 273 9.6 Utility theory and risk … focus are decision making under conflicting objectives, decision making under risk and uncertainty, decision making with … 2.5.2 Conflict of objectives 34 2.5.3 Risk preferences …

, we rarely know in advance what outcome will result from our decisions. Unfortunately, the standard theory of choice under …