In this paper we show that decision makers who maximize expected utility on a two-dimensional set of the real numbers … (i.e., who maximize expected utility on R×R) rather than on the real numbers alone, can act in ways predicted by the … Allais in his original 1953 paper can be explained by the extended expected utility model that is described in this paper …

-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected …This paper presents a new decision theory for modelling choice under risk. The new theory is a two … utility; but 2) may experience disappointment (elation) when the utility of a lottery's outcome falls short of (exceeds) the …

other regularity conditions. To incorporate such constraints, we modify the Savage decision model by endowing the state … space S and outcome space X with topological structures. We axiomatically characterize a Subjective Expected Utility (SEU …) representation of conditional preferences, involving a continuous utility function on X (unique up to positive affine transformations …

observable events are regular open subsets of S. We axiomatically characterize Subjective Expected Utility (SEU) representations … of conditional preferences over acts, involving a continuous utility function on X (unique up to positive affine …

Preferences over acts have an α-Maxmin Expected Utility (α-MEU) representation if they can be represented by an α …-mix between the worst and the best expected utility over a set or priors. The case α=1 is characterized in Gilboa and Schmeidler …