one lottery being chosen over the other. Choice probabilities have a stochastic utility representation if they can be … stochastic utility representation if and only if they are complete, strongly transitive, continuous, independent of common … consequences and interchangeable. Axioms of stochastic utility are consistent with systematic violations of betweenness and a …

-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected … rank-dependent utility and cumulative prospect theory); and preference reversals between valuations and choice. Behavioral …This paper presents a new decision theory for modelling choice under risk. The new theory is a two …