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behavioural models suggested by psychology (i.e., weighted probabilities applied to regret and rejoice theory), and by updating …
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So far, "salience theory of choice under risk" has been mainly applied to situations of risk rather than to those of … uncertainty. In this paper, we show that salience theory provides the prediction that Allais paradoxes should never occur in the …
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This paper studies the optimal extraction of a non-renewable resource under uncertainty using a discrete-time approach in the spirit of the literature on precautionary savings. We find that boundedness of the utility function, in particular the assumption about U(0), gives very different results...
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