An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive … necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure … that expected (marginal) utility remains finite also under heavy-tailed distributional assumptions. Our results are context …

Although the link between risk aversion and diminishing marginal utility of wealth is academically well established …-based support for the concept of relative utility and reconfirmation of the meaningful role of behavioural finance in economics and …

This article reviews recent developments in revealed preference theory. It discusses the testable implications of … theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments …, subjected expected utility and maxmin expected utility in the presence of uncertainty, and exponentially discounted utility for …