can be resolved on choices of large utility values …

compatible with utility functions that are discontinuous at the origin, but requires the nonemptiness of best-replies at the … origin (and in some sense is known); the second requires the discontinuity of utility functions at the origin and the …

choosing a solution is modeling the decision maker's attitude to risk. The expected utility theory was the first approach that … extensions of the original expected utility theory, and the analysis of the main properties of the cumulative prospect theory …

Carlo simulations. Preferences are modeled by time-additive expected utility and, alternatively, by recursive non …-expected utility. The empirical results for the period 1960 to 1994 confirm those for the U.S. and favour the use of recursive non …-expected utility which clearly distinguishes between risk preference and time preference. The leverage approach yields the first moment …