This paper analyzes individual decision making under risk. It is assumed that an individual does not have a preference … one lottery being chosen over the other. Choice probabilities have a stochastic utility representation if they can be … stochastic utility representation if and only if they are complete, strongly transitive, continuous, independent of common …

I show that the predictive content of the hypothesis of subjective expected utility maximization critically depends on … what the analyst knows about the details of the problem a particular decision maker faces. When the analyst does not know … anything about the agentacute;s payoffs or beliefs and can only observe the sequence of actions taken by the decision maker any …

Are individuals always better off when their preferences can be represented by expected utility?I study this question …-run by expected utility maximisers with the share they would receive if their preferences were described by prospect theory … preferences instead when, in either case, they bargain with expected utility maximisers. I present a necessary and sufficient …

documented in experiments. This model, Boolean expected utility (BEU), represents the belief the decision-maker uses to evaluate …

The paper reconstructs the history of the experimental attempts to measure the cardinal utility of money between 1950 … and 1985 within the framework provided by expected utility theory (EUT). It is shown that this history displays a definite … trajectory: from the confidence in EUT and the EUT-based measurement of utility of the 1950s to the skepticism that, from the mid …

Expected utility functions are limited to second-order (conditional) risk aversion, while non-expected utility … aversion is consistent with the framework of the expected utility hypothesis. Our theoretical result proposes new insights into … participation. Our model is compared to the rank-dependent expected utility model …

Consider a subjective expected utility preference relation. It is usually held that the representations with which this … relation is compatible differ only in one respect, namely, the possible scales for the measurement of utility. In this paper, I … existence is that the standard axiomatizations of subjective expected utility fail to provide the measurement of subjective …

This paper introduces a model of decision making under ambiguity by extending the Bayesian approach to uncertain …

, or temperate) von Neumann-Morgenstern utility functions. The very idea to devise those conditions is based on the reverse … claim of an old observation by Arrow that a risk-averse expected-utility maximizer will always accept a sufficiently small … stake in any positive expected-value bet if her von Neumann-Morgenstern utility function is differentiable …

In this paper, we examine some characterizing implications of the expected utility model with a particular focus on … monotonicity, can characterize the expected utility model. In this case, weakening the independence axiom can still yield an … expected utility, but in a weaker sense implying that our axiomatization is tight …