Optimism and Pessimism with Expected Utility [PDF]
Savage (1954) provided a set of axioms on preferences over acts that were equivalent to the existence of an expected utility representation. We show that in addition to this representation, there is a continuum of other .expected utility.representations ...
Andrew Postlewaite +2 more
core +3 more sources
Choice under Uncertainty with the Best and Worst in Mind: Neo-additive Capacities. [PDF]
The concept of a non-extreme-outcome-additive capacity (neo-additive capacity ) is introduced. Neo-additive capacities model optimistic and pessimistic attitudes towards uncer-tainty as observed in many experimental studies.
Chateauneuf, Alain +2 more
core
Investors Facing Risk II: Loss Aversion and Wealth Allocation When Utility Is Derived From Consumption and Narrowly Framed Financial Investments [PDF]
This paper studies the attitude of non-professional investors towards financial losses and their decisions concerning wealth allocation among consumption, risky, and risk-free financial assets.
Rengifo, Erick W., Trifan, Emanuela
core
Optimal Illusions and Decisions under Risk [PDF]
We examine a static one-risk-free-one-risky asset portfolio choice when the investor’s well-being is affected by the anticipatory feelings associated to potential capital gains and losses.
Christian Gollier
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Probabilistic Sophistication, Second Order Stochastic Dominance, and Uncertainty Aversion [PDF]
We study the interplay of probabilistic sophistication, second order stochastic dominance, and uncertainty aversion, three fundamental notions in choice under uncertainty.
Fabio Maccheroni +3 more
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SHOULD AGRICULTURAL AND RESOURCE ECONOMISTS CARE THAT THE SUBJECTIVE EXPECTED UTILITY HYPOTHESIS IS FALSE? [PDF]
This paper argues that the subjective expected utility (SEU) hypothesis has serious limitations in both positive and normative analysis. In addition to experimental evidence, we discuss examples where alternatives to the SEU model provide a richer ...
Woodward, Richard T.
core +1 more source
Value coding by primate amygdala neurons complies with the continuity axiom of economic choice theory. [PDF]
J NeurophysiolGrabenhorst F +2 more
europepmc +1 more source
Medical decision analysis for personalized oncology at the patient bedside. [PDF]
TumoriCasali PG +19 more
europepmc +1 more source
The Impact of Teachers' Expectations on Students' Educational Opportunities in the Life Course [PDF]
The substantial aim of this paper is to integrate the main idea of 'Pygmalion' or self-fulfilling prophecy research (Rosenthal and Jacobson, 1968; Jussim and Harber, 2005) into the general subjective expected utility framework about inequality in ...
Dominik Becker
core