Many violations of the Independence axiom of Expected Utility can be traced to subjects' attraction to risk …-free prospects. Negative Certainty Independence, the key axiom in this paper, formalizes this tendency. Our main result is a utility … rationality postulates. Such preferences can be represented as if the agent were unsure of how risk averse to be when evaluating a …

. As applications, we investigate the properties of optimized certainty equivalent based on the rank-dependent utility (RDU …) model. The dual representation of RDU-based shortfall risk measure proposed by Mao and Cai (2018) is also presented …