Izhakian, Yehuda; Izhakian, Zur - In: Economic Theory 58 (2015) 1, pp. 59-98
This paper introduces a new model of decision making under uncertainty. Aiming to provide a more realistic depiction of decision making, it generalizes the von Neumann–Morgenstern theory by including additional tiers of uncertainty. In this model, beliefs about the probabilities of events are...