Revisiting Risk and Rationality: A Reply to Pettigrew and Briggs
نویسندگان
چکیده
I have claimed that risk-weighted expected utility (REU) maximizers are rational, and that their preferences cannot be captured by expected utility (EU) theory. Richard Pettigrew and Rachael Briggs have recently challenged these claims. Both authors argue that only EU-maximizers are rational. In addition, Pettigrew argues that the preferences of REU-maximizers can indeed be captured by EU theory, and Briggs argues that REU-maximizers lose a valuable tool for simplifying their decision problems. I hold that their arguments do not succeed and that my original claims still stand. However, their arguments do highlight some costs of REU theory.
منابع مشابه
Effect of Cognitive Biases on Rationality of Economic Decision Making under Risk among Students of Shahid Beheshti University
The purpose of this study is to determine the quality of individual economic decision making under risk and uncertainty. The research method is a quasi-experiment with single group and a post-test. The total population of the students of Shahid Beheshti University in 97 was 8.700 and due to non-normal distribution, we should use non-parametric Wilcoxon test, with sample of 180. The tool used to...
متن کاملNo . 059 - 2014 Fair management of social risk * January 2014
We provide a general method for extending fair social preferences defined for riskless economic environments to the context of risk and uncertainty. We apply the method to the problems of managing unemployment allowances (in the context of macroeconomic fluctuations) and catastrophic risks (in the context of climate change). It requires paying attention to individuals’ risk attitudes and ration...
متن کاملJurisprudence and Rationality
There are different concepts of rationality: specific rationality, normative rationality and instrumental rationality whose limitation covers the holistic rationality and represents the fate of rationality in the West. Thus following Hume reason became the slave of feelings and lost its authority for choosing the goal. In Islamic culture reason with its undeniable background in Shariah enjoy...
متن کاملInvestigating the role of Myers-Briggs personality dimensions in predicting the rate of drug use by mediatin capital psychological and self control in drug addicts
Abstract Objective: The aim of this study was to investigate the role of Myers-Briggs personality dimensions in predicting the tendency to consume drugs by mediating the psychological and self-control capital in drug addicts. Method: The present study was descriptive correlational. The statistical population of this study included all persons involved in drug addiction referred to Article 16 ...
متن کامل