Wakker (1990) showed that under natural conditions the Choquet expected utility (CEU) and the rank-dependent utility (RDU) models are identical. Invoking Wakker's result and applying the certainty equivalent reduction procedure, this paper shows that risk aversion in the RDU model implies...

This chapter reviews developments in the theory of decision making under risk and uncertainty, focusing on models that, over the last 40 years, dominated the theoretical discussions. It also surveys some implications of the departures from the “linearity in the probabilities” aspect of...