marginal utility for wealth necessarily is facilitated by a risk premium function that only robustly is parameterized with …

We present a novel characterization of random rank-dependent expected utility for finite datasets and finite prizes. As … a byproduct, we obtain a characterization of random expected utility that works for finite datasets. The test lends … itself to statistical testing. We apply our test to an experimental dataset and find evidence against random expected utility …

identify the state space and the learning process. In this model, the agent is viewed as if he learns the utility of an object …

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

other regularity conditions. To incorporate such constraints, we modify the Savage decision model by endowing the state … space S and outcome space X with topological structures. We axiomatically characterize a Subjective Expected Utility (SEU …) representation of conditional preferences, involving a continuous utility function on X (unique up to positive affine transformations …