Risk, rationality and expected utility theory
نویسندگان
چکیده
منابع مشابه
A Theory of Risk without Expected Utility
This paper challenges the use of expected value concepts including expected return, expected utility, non-expected utility and weighted utility in the study of risk. It proves that all such concepts must lead to the rejection of any gambling or insurance proposal. Consequently, theories applying them become futile. Instead, this paper seeks to explain the risky behaviors by the Central Limit Th...
متن کاملBackground risk in generalized expected utility theory
The response of risk-averse decision-makers with expected-utility preferences to the addition of independent background risk has been the subject of a substantial literature. Important contributions include those of Pratt and Zeckhauser (1987); Pratt (1988); Kimball (1993); Gollier and Pratt (1996). The literature has recently been summarized and extended by Gollier (2000). The primary result o...
متن کاملExpected Uncertain Utility Theory†
We introduce and analyze expected uncertain utility theory (EUU). A prior and an interval utility characterize an EUU decision maker. The decision maker transforms each uncertain prospect into an interval-valued prospect that assigns an interval of prizes to each state. She then ranks prospects according to their expected interval utilities. We define uncertainty aversion for EUU, use the EUU m...
متن کاملNon-expected Utility Theory
The expected utility/subjective probability model of risk preferences and beliefs has long been the preeminent model of individual choice under conditions of uncertainty. It exhibits a tremendous flexibility in representing aspects of attitudes toward risk, has a well-developed analytical structure, and has been applied to the analysis of gambling, games of strategy, incomplete information, ins...
متن کاملExpected Utility Theory
This is a chapter for the forthcoming Handbook of Rational and Social Choice, Paul Anand, Prasanta Pattanaik, and Clemens Puppe, eds., Oxford University Press, 2008. We review classic normative expected utility theory. Our goal is to frame the subsequent chapters (which consider more modern extensions to and deviations from this classic theory) in a way that is accessible to the nonspecialist b...
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ژورنال
عنوان ژورنال: Canadian Journal of Philosophy
سال: 2015
ISSN: 0045-5091,1911-0820
DOI: 10.1080/00455091.2015.1119610