A new integral for capacities, different from the Choquet integral, is introduced and characterized. The main feature of the new integral is concavity, which might be interpreted as uncertainty aversion. The integral is then extended to fuzzy capacities, which assign subjective expected values...

A likelihood order is defined over linear subspaces of a finite dimensional Hilbert space. It is shown that such an order that satisfies some plausible axioms can be represented by a quantum probability in two cases: pure state and uniform measure

This paper deals with weighted utility, optimism vs. pessimism, and subjective valuation of European and American options. What connects these subjects is stochastic dominance and its behavioral effects. We show that one probability distribution likelihood-ratio dominates another distribution if...

Justifiability is a name for a variety of well-documented behavioral phenomena that violate rational choices. For instance, preferences and choices frequently depend on payoff-irrelevant factors, and not only on the collection of alternatives. Motivated by these findings we present a generalized...

Applying the concepts of Nash, Bayesian or correlated equilibrium to analysis of strategic interaction, requires that players possess objective knowledge of the game and opponents' strategies. Such knowledge is often not available. The proposed notions of subjective games, and subjective Nash...

Global games are real-valued functions defined on partitions (rather than subsets) of the set of players. They capture "public good" aspects of cooperation, i.e. situations where the payoff is naturally defined for all players ("the globe") together, as is the cause with issues of environmental...