Characterization of Expected Utility under Model Mis-
More pessimism than greediness: a characterization of monotone risk aversion in the Rank-Dependent Expected Utility model
... Dependent Expected Utility (RDEU) model. This model replaces expected utility by another functional, characterized by two functions, a utility function u in conjunction ...
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Awareness-Dependent Subjective Expected Utility
... subjective expected utility representation is then characterized in an embarrassingly straightforward ...subjective expected utility in unawareness ...choice-theoretic model that allows ...
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Decision under risk : The classical Expected Utility model
... EU model Despite the fact that second order stochastic dominance has a nice characteri- zation in the EU model, this notion can lead to some counter-intuitive ...the expected utility ...
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Quantum-like model of subjective expected utility
... non-CP model which has already demonstrated its applicability to the solution of non-trivial problems in not only natural science but also in economics, psychology and other areas of social ...
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Stock options under non-expected utility theory
... a model to estimate the subjective value of stock option plans, a recent approach by Hall and Murphy (2000, 2002) has aimed to esti- mate the value by calculating a certainty equivalent value, ...the ...
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Resolving Inconsistencies in Utility Measurement under Risk: Tests of Generalizations of Expected Utility
... Finally, we examined the fit of the various theories by imposing on each individual the median optimal parameters for each health state-gauge duration pair and by then examining which theory yielded the lowest sum of ...
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Resolving inconsistencies in utility measurement under risk: Tests of generalizations of expected utility
... single model could explain the data entirely. The findings that under expected utility there was no significant difference between risk-risk methods (when the utility for duration is ...
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Expected Utility and Catastrophic Risk in a Stochastic Economy-Climate Model
... bounded utility functions, so as to avoid having to restrict dis- tributional ...on utility. In particular, unbounded utility (such as HARA with 0 < α ≤ 1; see Ikefuji et ...permitted under ...
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Disentangling Intertemporal Substitution and Risk Aversion under the Expected Utility Theorem
... decisions under uncertainty takes the form of conditional expectation of sum of discounted period ...period utility function, and hence tied. For instance, under the power utility form, the ...
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Stochastic expected utility theory
... theory—stochastic expected utility theory (StEUT)—is proposed to describe individual decision making under ...random utility model ...choice under risk can be due to errors that ...
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Directed expected utility networks
... ditional utility independence and generalized additive independence, have more recently started to ...graphical model, called a directed expected utility network, whose edges depict both ...
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A Stochastic Expected Utility Theory
... new model that explains the violations of expected utility theory through the role of random ...making under risk when individuals make random errors when they compute expected ...
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A Theory of Vague Expected Utility
... the Expected Utility (EU) model of decision under risk, many alternative theories have been proposed 1 ...choice under risk, but the very principle of rationality (usually intended as ...
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Optimal Investment and Risk Control Strategy for an Insurer under the Framework of Expected Logarithmic Utility
... its expected utility of terminal wealth by selecting optimal investment and risk control ...financial model, a part of insurers’ wealth is in- vested into the financial ...insurer under ...
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Non-expected utility vs. expected utility theory in consumption/savings decisions over the life cycle
... made under the assumption that households act according to Rank-Dependent Utility Theory with the estimated ...from Expected Utility Theory, we use it as a base case for the ...the ...
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Boundedly Rational Expected Utility Theory
... standard’ model of decision making under risk and uncertainty, ...procedural model of preferential ...a model might be specified in ways that are in keeping with conventional economic ...
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A Remark on Bargaining and Non-Expected Utility
... that under this assumption, and within the noncooperative bargaining model, the resulting preferences are indistinguishable from expected utility ...bargaining model of alternating ...
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Subjective expected utility with imperfect perception
... decisions under uncertainty, there are constraints on both the available information and the feasible ...decision model by endowing the state space S and outcome space X with topological ...jective ...
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Subjective expected utility with topological constraints
... Conclusion This paper has presented a series of SEU representations for preferences under uncertainty. However, it is now well-established that the SEU model is often not descriptively accurate. In some ...
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Rejecting Small Gambles Under Expected Utility
... and expected usage distributions and tariff choices, the results show that individuals who choose the flat tariff can be characterized as risk neutral and those who choose the measured tariff as risk ...
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