Decision-Making Method with Incomplete Knowledge under Uncertainty

Decision Making Under Uncertainty When Preference Information Is Incomplete

We consider the problem of optimal decision making under uncertainty but assume that the decision maker’s utility function is not completely known. Instead, we consider all the utilities that meet some criteria, such as preferring certain lotteries over certain other lotteries and being risk averse, s-shaped, or prudent. This extends the notion of stochastic dominance. We then give tractable fo...

Delegation in decision making under uncertainty. Are preferences incomplete?

In this paper we experimentally document the existence of an unexplored violation of rationality in decision making under uncertainty. In a series of incentivized decision tasks subjects have to choose between risky and ambiguous prospects or state to be indifferent, where the last option effectively means delegating the choice to a fair chance device. We observe that half of the subjects deleg...

Decision making under uncertainty

Decision making under uncertainty

1 Laboratory of Computational Neuroscience, École Polytechnique Fédérale de Lausanne, Lausanne, Switzerland 2 Laboratoire de Recherché en Neuroimagerie, Le Centre Hospitalier Universitaire Vaudois, Lausanne, Switzerland 3 Information Processing and Economic Decision Making, Department of Psychology, Universität Konstanz, Konstanz, Germany 4 Economic Psychology, Department of Psychology, Univers...

Decision making under uncertainty with fuzzy targets

This paper discusses the issue of how to use fuzzy targets in the targetbased model for decision making under uncertainty. After introducing a target-based interpretation of the expected value on which it is shown that this model implicitly assumes a neutral behavior on attitude about the target, we examine the issue of using fuzzy targets considering different attitudes about the target select...