Two non-expected-utility-theory approaches to model decision making under risk are regret theory (Loomes and Sugden …, 1982; Bell, 1982) and salience theory (Bordalo, Gennaioli, and Shleifer, 2012). While the psychological underpinning of … theory is a special case of regret theory. Moreover, we trace out the relationship between diminishing sensitivity of the …

I provide a novel simplified approach to Savage's theory of subjective expected utility. Such an approach is based on …

We propose a multivariate extension of Yaari's dual theory of choice under risk. We show that a decision maker with a …

Cumulative prospect theory (CPT) has been proposed as an alternative to expected utility theory to explain irregular …

theory of quantifiable beliefs - a form of probabilistic sophistication that does not preclude state-dependent preferences … and does not require the reduction of compound lotteries. The theory includes the state-dependent expected utility model … special cases. The theory is flexible enough to admit recursivity in the decision-making process. One specific example of this …