Expected utility theory does not directly deal with the utility of chance. It has been suggested in the literature (Samuelson 1952, Markowitz 1959) that this can be remedied by an approach which explicitly models the emotional consequences which give rise to the utility of chance. We refer to...

Expected utility theory does not directly deal with the utility of chance. It has been suggested in the literature (Samuelson 1952, Markowitz 1959) that this can be remedied by an approach which explicitly models the emotional consequences which give rise to the utility of chance. We refer to...

This book is written for those seeking a decision theory appropriate for use in serious choices such as insurance. It employs stages of knowledge ahead to track satisfactions and dissatisfactions. From experimental and questionnaire data, people take into account such stages of knowledge ahead...