Shackle was one of the representative critics of probability calculus. His alternative decision theory was … interpretation of Shacklean theory by focusing on the common stage structure of the decision-making. This paper shows that the … characteristics of Shackle-Katzner framework can be explained as: (1) the non-distributive and non-additive ordinal measure of …

This paper demonstrates that well-established biases in decision making under uncertainty can generate poverty traps. A … theoretical framework is developed to demonstrate that: i) probability weighting and ambiguity attitude can lead individuals to …

theory (PT) addresses (i) and (ii) by proposing an editing phase that eliminates extremely low probability events, followed … of extremely low probability and treat extremely high probability events as certain. The main alternative decision … theories, rank dependent utility (RDU) and cumulative prospect theory (CP) incorporate (i) but not (ii). By contrast, prospect …

future. The probabilities of winning in the risky future prospects varied and facilitated the estimation of probability … decision errors can explain or be highly correlated with hyperbolic discounting and non-linear (inverse-S-shaped) probability … decision errors are correlated with the strong inverse-S-shaped probability weighting (w(p)) patterns in our two samples. We …

of interest. Max-min expected utility over that set gives rise to equilibrium prices of model uncertainty expressed as … a baseline model that generate countercyclical prices of uncertainty …