منابع مشابه
Stochastic Utility Theorem
This paper analyzes individual decision making. It is assumed that an individual does not have a preference relation on the set of lotteries. Instead, the primitive of choice is a choice probability that captures the likelihood of one lottery being chosen over the other. Choice probabilities have a stochastic utility representation if they can be written as a nondecreasing function of the diffe...
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Stochastic trees are semi-Markov processes represented using tree diagrams. Such trees have been found useful for prescriptive modeling of temporal medical treatment choice. We consider utility functions over stochastic trees which permit recursive evaluation in a graphically intuitive manner analogous to decision tree rollback. Such rollback is computationally intractable unless a low-dimensio...
متن کاملStochastic Choice and Expected Utility
Dagsvik (2008) has recently extended Debreus (1958) representation theorem for stochastic choice to the domain of lotteries. Dagsvik provides conditions under which there exists a linear utility function such that the probability of choosing one alternative over another is represented by the di¤erence in their utilities. We give an alternative, simpler proof of Dagsviks result. Our proof deri...
متن کامل1 Stochastic Expected Utility Theory
A new decision theory is proposed to explain the violations of expected utility theory through the role of random errors. The main premise of the new theory is that individuals make random errors when they compute the expected utility of a risky lottery. When being distorted by error, the expected utility of a lottery should neither exceed the utility of the highest possible outcome nor fall be...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2008
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2007.12.005