We find the asymptotics of the value function maximizing the expected utility of discounted dividend payments of an … insurance company whose reserves are modeled as a classical Cramér risk process, with exponentially distributed claims, when the … initial reserves tend to infinity. We focus on the power and logarithmic utility functions. We also perform some numerical …

irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …We present a preference foundation for Chance Theory (CT), a model of decision making under uncertainty where the … and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In …

Many studies document failures of expected utility’s key assumption, the independence axiom. Here, we show that …

subsequent times learns to behave as prescribed by the expected-utility model. To do so, the analysis moves from the relevant … behavioural models suggested by psychology (i.e., weighted probabilities applied to regret and rejoice theory), and by updating …), and this is true to a greater extent in a complex context. The expected-utility model explains real behaviours in the long …