In this paper, we examine some characterizing implications of the expected utility model with a particular focus on … independence and continuity. Many well documented choice anomalies under risk (e.g., the common consequence and ratio effects) show … monotonicity, can characterize the expected utility model. In this case, weakening the independence axiom can still yield an …

Three reasons for why people may evaluate utility in a rank-dependent fashion have been suggested: (1) rank …

In order to explain the Ellsberg paradox, a non-additive expected utility has recently been proposed. In this paper we …

The model of rational decision-making in most of economics and statistics is expected utility theory (EU) axiomatised … dimensions by the ex ante mean and standard deviation (μ,σ) of the financial return anticipated from that investment. Utility …

In this paper, we study the theory of preference over unbounded random prospects using an axiomatic approach. We first … al.; this paper may thus be regarded as a bridge between the dual theory of Yaari and the smooth preference model of …

We present two axiomatizations of the Second-Order Expected Utility model in the context of the standard models of …

The moderate utility model represents the probability of choosing an option in a pairwise comparison as an increasing … function of utility difference divided by a dissimilarity metric. We provide a single, directly testable property that … compromise. Extending the analysis to the domain of risky choice, we introduce and characterize the moderate expected utility …

State-dependent utility is a problem for the behavioral branch of decision theory under uncertainty. It questions the … exposed to the problem of state-dependent utility. The problem can be argued to be solved even when the decision-maker has no …