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 …

model based in utility theory to determine the likelihood that an asset will generate a return in excess of the risk …

subjective expected utility theory in his 1954 classic The Foundations of Statistics. It is the latter's acknowledged fiasco to …

reference made to it in current decision theory. But Savage's reaction to his critics has never been examined. Although Savage … substantive. In particular, Savage's defence of the normative value of his theory against counterexamples such as Ellsberg's did …

developments of modern decision theory. The focus is on the so-called non-additive probability approach to decision theory under … uncertainty, which, not unlike Shackle's analysis, stresses the inability of agents to describe uncertain environments. A … discussion of the pros and cons of the parallel between Shackle's theory and the non-additive developments is provided …