An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive … necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure … that expected (marginal) utility remains finite also under heavy-tailed distributional assumptions. Our results are context …

summarized in a so-called "Prospect Theory". These biases are quite obvious if one compares data of affected and unaffected … people. But this theory offers, as well, a way to get results more accurate. …

preference experiment is usually to estimate parameters of a discount function, assumptions concerning the nature of utility may … preferences, with a focus on the measurement or control for potentially non-linear utility. While the objective of a time … have an important influence upon these estimates. The survey classifies experiment designs on two dimensions: whether they …

. Celen (2012) generalizes this theorem, which is well-known for subjective expected utility (SEU), to maxmin expected utility … contradiction with the principle of recursively defined utility. As a consequence, Celen's framework features dynamic inconsistency … recursive utility and thus respects dynamic consistency. …