Huang, Hui; Zhang, Shunming - In: Annals of Economics and Finance 12 (2011) 2, pp. 233-263
This paper re-examines the rank-dependent expected utility theory. Firstly, we follow Quiggin's assumption (Quiggin … 1982) to deduce the rank-dependent expected utility formula over lotteries and hence extend it to the case of general … independence axiom and then to prove the representation theorem of rank-dependent expected utility. Finally, we make direct use of …