A decision maker (DM) is asked to make choices from a set of acts, which entail both risk and uncertainty in the sense … choice the DM can make) can also be rationalized by the DM maximizing her subjective expected utility for some subjective …

irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from … 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 …

objective beliefs are first aggregated into “equivalent unambiguous beliefs” and then risk preferences are used to compute the … utility of these equivalent unambiguous beliefs. Such an approach makes it possible to disentangle uncertainty aversion …, related to the processing of information, from risk aversion, related to the evaluation of the equivalent unambiguous beliefs …