objectively (resp. subjectively) expected value of a von Neumann-Morgenstern utility function. For choice under risk, this implies … weak preference ordering. For choice under risk (resp. uncertainty), preferences are assumed to be represented by the … concerning behavior in decision trees. Following Cubitt (1996) , these principles include dynamic consistency, separability, and …

This chapter provides a critical review of the theories of decision making under risk and under uncertainty and the …

irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …We present a preference foundation for Chance Theory (CT), a model of decision making under uncertainty where the … and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In …

This paper extends Savage's subjective approach to probability and utility from decision problems under exogenous … simple preference relations uniquely identifies the decision maker's utilities and beliefs of all orders. Connections with …

utility function can be represented as a convex mixture between worst and best case, but now at the local, infinitesimal level …. We study the properties of the utility function and provide an Arrow- Pratt approximation of the static and dynamic …

We review some of the (theoretical) economic implications of David Schmeidler's models of decision under uncertainty … (Choquet expected utility and maxmin expected utility) in competitive market settings. We start with the portfolio inertia … equilibrium implications (indeterminacies, non revelation of information) of these decision models. A section is then devoted to …

We propose a new parametrization of Quantum Decision Theory (QDT), based on Rank Dependent Utility Theory (RDU). Using … experimental data made of choices between pairs of lotteries, we compare QDT with "classical" decision theories, RDU and Cumulative … decision makers as either RDU, RDU-based QDT, CPT or CPT-based QDT. Our major findings are the following: the quantum …

This paper presents a new decision theory for modelling choice under risk. The new theory is a two …-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected … utility; but 2) may experience disappointment (elation) when the utility of a lottery's outcome falls short of (exceeds) the …