-averse. Moreover, the use of unbounded utility to model risk attitudes fails to explain some decision-making paradoxes. In contrast … more psychological impact on the newsvendor than the gains. In economics and decision theory, the classical newsvendor … models treat losses and gains equally likely, by disregarding the expected utility when the newsvendor is loss …

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 …