expected utility
Combining Expected Utility and Weighted Gini Simpson Index into a Non Expected Utility Device
... Subjective expected utility, having a first cornerstone in the works of de Finetti and Ramsey [16] both pub- lished in 1931, followed by a further substantial development with Savage in 1954, was regarded ...
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Expected utility theory, Jeffrey’s decision theory, and the paradoxes
... subjected to regular waves of reappraisal, with a fairly wide range of final conclusions, some of which clearly supportive of the claim that EU theory captures the essentials of a theory of rational agency, others ...
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Expected Utility Preferences versus Prospect Theory Preferences in Bargaining
... and expected utility approaches, namely, evaluation about a reference point, loss aversion, and probability ...of expected utility maximisers, and ask, how does the share of the pie received ...
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Is Cumulative Prospect Theory a Serious Alternative for the Expected Utility Paradigm?
... This paper is organized as follows. 1 In section 2, we try to outline the most im- portant elements not embodied in Expected Utility Model, but systematically found in observed pattern of choices among ...
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Risk Aversion and Expected-Utility Theory: A Calibration Theorem
... marginal utility at $300,000 is tiny compared to the marginal utility at wealth levels below $290,000; hence, even if the marginal utility does not diminish at all above $300,000, a person won’t care ...
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A Maximum Expected Utility Framework for Binary Sequence Labeling
... maximum expected F-score training of deci- sion trees and logistic regression ...the expected utility computations presented here are not tied in any way to particular classifiers, but can be used ...
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FOUNDATIONS OF EXPECTED UTILITY THEORY AND ITS ROLE IN THE PURCHASE OF INSURANCE
... Decision making is a function of an individual’s preference. In the midst of uncertainty a decision maker will aim to maximize his utility. This paper reviews the bedrock upon which the expected ...
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Expected utility theory for monitoring-based decision making
... axiomatic expected utility theory (EUT) was first introduced by von Neumann and Morgenstern in 1944 [2], and later developed in the form that we currently know by Raiffa and Schlaifer in 1961 ...its ...
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A Quantum Conceptual Explanation of Violations of Expected Utility in Economics
... The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage’s Sure-Thing Principle. It has been put forward, e.g. by situations such as the Allais and ...
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Learning Probabilistic Models: An Expected Utility Maximization Approach
... an expected util- ity maximizing decision maker/investor who would use the model to make decisions (bets), which result in well defined ...of expected utility over a well-defined family of ...the ...
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A Contribution of Expected Utility Theory in Taxpayers’ Behavior Modeling
... We try to analyze the attitudes of taxpayers regarding tax system. We propose an approach which combines between theory and practice. In the first step, we present a normative approach; based on a theoretical study. In ...
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PESSIMISTIC PORTFOLIO ALLOCATION AND CHOQUET EXPECTED UTILITY
... is expected utility maximization as elaborated by Bernoulli (1738), Ramsey (1931), de Finetti (1937), von Neumann and Morgenstern (1944), Savage (1954), Fishburn (1982) and many subsequent ...the ...
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An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data
... of utility theories is not only to analyze real-world choice behavior but also real-world pricing behavior, for instance on financial ...of expected utility nor the comparative performance of the ...
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Abstract: Based on the Expected Utility Theory and Regret Theory, the Extended Regret Theory (ERT)
... the Expected Utility Theory and Regret Theory, the Extended Regret Theory (ERT) is proposed in this paper to study the optimal pricing strategy of retailers in e-commerce ...regret utility function ...
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Portfolio Behaviour of Commercial Banks under Risk Aversion, The Expected Utility Approach: Evidence from Jordan
... This paper attempts to explain the banking performance in Jordan to draw out the implications of related theories and evidence for policy makers. Accordingly, they can influence the banking industry, which, in turn, ...
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Aversion to Risk and Downside Risk in the Large and in the Small under Non Expected Utility: A Quantile Approach
... the expected utility model as a special case, the investigation is done under a broad class of non-expected utility ...the expected utility model interact as they affect the risk ...
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Understanding individuals’ decisions about vaccination: a comparison between Expected Utility and Regret Theory models
... The aims of this paper are, therefore, to propose new theoretical models for examining individual decision making regarding vaccination where (i) decisions are modelled as discrete choices which are (ii) a product both ...
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Correcting expected utility for comparisons between alternative outcomes: A unified parameterization of regret and disappointment
... the expected utility formulation in its usual form, but adds a corrective term for any discrepancy between the obtained outcome and the best possible outcome for the action that was ...
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Why Do People Pay Taxes? Prospect Theory Versus Expected Utility Theory
... Tax evasion analysis is typically based on an expected utility theory (EUT) framework. However, this leads to several qualitative and quantitative puzzles. Given actual probabilities of audit and penalty ...
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Risk Preferences Beyond Expected Utility Theory: Theoretical and Experimental Approaches
... In the attempt to extend existing theoretical models, the focus was on descriptive models that are based on the consistent maximization of an objective function. This ensures that the specified theories can be employed ...
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