Choice under uncertainty with the best and worst in mind: Neo-additive capacities

The concept of a non-extreme-outcome-additive capacity (neo-additive capacity ) is introduced. Neo-additive capacities model optimistic and pessimistic attitudes towards uncertainty as observed in many experimental studies. Moreover, neo-additive capacities can be applied easily in economic problems, aswe demonstrate by examples. This paper provides an axiomatisation of Choquet expected utility with neo-capacities in a framework of purely subjective uncertainty.

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Year of publication:	2003
Authors:	Chateauneuf, Alain ; Eichberger, Jürgen ; Grant, Simon
Publisher:	Heidelberg : University of Heidelberg, Department of Economics
Subject:	Verhaltensökonomik \| Theorie \| Entscheidung unter Unsicherheit \| optimism \| pessimism \| Choquet expected utility \| portfolio choice

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Series:	Discussion Paper Series ; 393
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	882218433 [GVK] hdl:10419/127210 [Handle]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	EconStor

Persistent link: https://www.econbiz.de/10011422102