Geometric utility theory is proposed for modeling decision making under risk and uncertainty. If a decision maker … they admit a geometric utility representation. Geometric utility resembles a Cobb-Douglas production function with constant … returns to scale. Geometric utility is unique up to a multiplication by a positive constant and exponentiation by a positive …

-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected …This paper presents a new decision theory for modelling choice under risk. The new theory is a two … utility; but 2) may experience disappointment (elation) when the utility of a lottery's outcome falls short of (exceeds) the …

popular method is to add a random error term on the utility scale. This method, however, violates stochastic dominance. A … utility ; risk aversion …

This paper analyzes individual decision making under risk. It is assumed that an individual does not have a preference … relation on the set of risky lotteries. Instead, an individual possesses a probability measure that captures the likelihood of … one lottery being chosen over the other. Choice probabilities have a stochastic utility representation if they can be …

A new model of intertemporal choice — "discounted incremental utility" (DIU) — is presented. DIU coincides with … Samuelson's discounted utility (constant/exponential discounting) when utility function is linear. DIU has several advantages … over discounted utility (and its generalizations — quasi-hyperbolic and generalized hyperbolic discounting): a) time …

Nontrivial decision problems typically involve a trade-off among multiple attributes of choice options. One simple way … separable utility. Applications of weighted utility can be found in choice under risk (expected utility) and uncertainty … (subjective expected utility), intertemporal choice (discounted utility) and welfare economics (utilitarian social welfare …