Neumann-Morgenstern expected utility functions using cooperative game theory. The social network literature studies various … measures can be supported as von Neumann-Morgenstern expected utility functions, reflecting preferences over different network … ordinary risk . We show that this leads to a class of centrality measures that is fully determined by the degrees (i.e. the …

An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive … necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure … that expected (marginal) utility remains finite also under heavy-tailed distributional assumptions. Our results are context …

Choice shifts occur when individuals advocate a risky (safe) decision when acting as part of a group even though they … prefer a safe (risky) decision when acting as individuals. Even though research in psychology and economics has produced a …) rank-dependent utility and (ii) a desire to conform to the wishes of the majority. The evidence provides clear support for …

-down" model of executive optimization. Others, like salience theory, assume a "bottom-up" influence where attention is driven by … understanding of their relative importance. We propose a multi-attribute random utility model that unifies prior theoretical … aversion. We discuss the insights regarding the nature of attention and its role in economic theory. …

analyze the effect of risk aversion, ambiguity aversion and the elasticity of intertemporal substitution on the willingness to … pay to avoid climate change risk. The first part of the paper analyzes a general disaster (jump) risk model with a … constant arrival rate of disasters. This provides useful intuition in how preferences influence valuation of long-term risk …

framework demonstrates that incorporating descriptively-valid theories of risk in a principal-agent setting leads to incentive …

experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous … outcomes experienced during the game. Risk aversion decreases after earlier expectations have been shattered by unfavorable … outcomes or surpassed by favorable outcomes. Our results point to reference-dependent choice theories such as prospect theory …