This paper introduces the concept of range-dependent utility. Instead of reference dependence which evaluates outcomes … decision maker is a fully rational expected utility maximizer only within a certain range. Range-dependent utility enables …-dependent utilities can be normalized to obtain decision utility -- a single utility function able to describe decisions involving …

It is widely held that under ordinal utility, utility differences are ill-defined. Allegedly, for these to be well … of the traditional binary relations underlying ordinal utility functions. Correlatively, it is also widely held that the … would be, in a nutshell, the hallmark of cardinal utility. While much is obviously true in these two tenets, this note …

A major virtue of von Neumann-Morgenstern utility, for example, in the theory of general financial equilibrium (GFE … utility, one which also delivers consistency between plan and execution - and more. In particular, it turns out that one … special case is in fact simply discounted expected utility. Moreover, this alternative formulation affords an extremely …

In this paper, we apply stochastic maximum principles to derive representations for exponential utility indifference … prices. We also obtain the related optimal portfolio processes and utility indifference hedging strategies. To illustrate our … theoretical results, we present several concrete examples and study the limit behavior of utility indifference prices for …

, equivalently: (a) a strictly increasing cost of information acquisition; (b) for a given prior, the expected utility from a …

allow utility values to be derived at the individual level also. The DCE presented respondents with eight pairwise risky … choices to estimate aggregate utility values for three EQ-5D health states, ranging from mild to severe. The design allowed … the elicitation of utility values for worse-than-dead states. Risk was represented using the stimulus used by EuroVaQ …

and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In … contrast to earlier approaches with models that aimed at separating riskless and risky utility, CT does not violate basic … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

symmetry if the latter is generated by a field. Moreover, solving the PDEs yields the functional form for utility equivalent to …, multivariate separability, and homogeneity, including the cases of Cobb-Douglas and CES utility. …

representation are provided along with a recursive formulation of intertemporal utility. This allows for tractable and consistent …