and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In … contrast to earlier approaches with models that aimed at separating riskless and risky utility, CT does not violate basic … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

The book consists of three parts: The first part reviews the development in axiomatic utility theory under risk since … the axiomatization of expected utility by von Neumann and Morgenstein. The second part explores some approaches to … the expected utility framework do not remain valid with non-expected utility theory …