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

Alain Chateauneuf, Simon Grant and Jürgen Eichberger

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:	January 7, 2003 ; This Version: January 7, 2003
Authors:	Chateauneuf, Alain ; Grant, Simon ; Eichberger, Jürgen
Publisher:	Heidelberg : University of Heidelberg, Department of Economics
Subject:	optimism \| pessimism \| Choquet expected utility \| portfolio choice

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Extent:	1 Online-Ressource (circa 46 Seiten) Illustrationen
Series:	Discussion paper series / University of Heidelberg, Department of Economics. - Heidelberg : [Verlag nicht ermittelbar], ZDB-ID 2217357-2. - Vol. no. 393
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	German
Other identifiers:	hdl:10419/127210 [Handle]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011620580