Wakker (1991) and Puppe (1990) point out a mistake in theorem 1 in Segal (1989). This theorem deals with representing preference relations over lotteries by the measure of their epigraphs. An error in the theorem is that it gives wrong conditions concerning the continuity of the measure. This...

This paper discusses two problems. (1) What happens to the conditional risk premium that a decisionmarker is willing to pay out of the middle prize in a lottery to avoid uncertainty concerning the middle prize outcome, when the probabilities of other prizes change? (2) What happens to the...

The Becker-DeGroot-Marschak mechanism is widely used to elicit decisionmakers' selling prices of lotteries. This mechanism leads, however, to the preference reversal phenomenon, which seemed to indicate nontransitive preferences. To solve this puzzle, Karni and Safra (1987) introduced a new...

A decision maker's attitude towards risk is said to be of order (i), (i) = 1, 2, if for every given risk (e) with expected value zero, the risk premium the decision maker is willing to pay to avoid the risk (te) goes with (t) to zero at the same order as t[superscript i]. This article presents...