A utility function is an important tool for representing a DM’s preference. We adjoin utility functions to multi …-objective optimization problems. In current studies, usually one utility function is used for each objective function. Situations may arise … for a goal to have multiple utility functions. Here, we consider a constrained multi-objective problem with each objective …

upon which she is betting. In decision theory, this is best known as a situation of moral hazard. Focusing on a …, that is ubiquitous in decision theory. Second, in general, moral hazard is not sufficient to overcome the challenges posed … by state-dependent utility to the behavioral identification of beliefs. This qualifies the sufficiency view, that is …

Maximizing the expected logarithmic utility, or equivalently the geometric mean, of a portfolio is a well-known yet … continuous variable is inappropriate. We will focus on how to solve the utility maximization problem in the presence of discrete … experiment conducted for the German stock market. Our approach generalizes to other utility functions satisfying some mild …

state probabilities. Individual utility functions and social preferences are required to satisfy the expected utility … hypothesis. On various domains, we investigate the extent to which the expected utility hypothesis can provide support for …

A number of authors have suggested that investors derive utility from realizing gains and losses on assets that they … own. We present a model of this "realization utility," analyze its predictions, and show that it can shed light on a …

Using implicit expected utility theory, a money metric of utility derived from playing a lottery game is developed …. Output of the lottery sector can be defined as the difference in utility with and without the game. Using a kinked parametric …

We provide a theory of decision under ambiguity in which the worst-case and best-case expected utility representations … are sufficient statistics for a decision maker's preferences; we refer to the new utility functions as meta-utilities. Our … utilities, mirroring the familiar ordinal utility functions over commodity baskets. Ambiguity attitude is simply the marginal …