A Theory of Vague Expected Utility

We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a rational, though incomplete, ordering - with a 'psychological’ view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns of choice as well as violations of independence.

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Year of publication:	2003-04-17
Authors:	Manzini, Paola ; Mariotti, Marco
Institutions:	EconWPA
Subject:	incomplete preference relation \| cyclical preferences \| expected utility

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Extent:	application/pdf
Series:	Game Theory and Information.
Type of publication:	Book / Working Paper
Notes:	Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on HP; pages: 27; figures: included 27 pages
Classification:	C7 - Game Theory and Bargaining Theory ; D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005118528