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Distorted Probabilities and Choice Under Risk

Distorted Probabilities and Choice Under Risk

Paperback

Series: Lecture Notes in Economic and Mathematical Systems, Book 363

Business GeneralEconomics

ISBN10: 3540542477
ISBN13: 9783540542476
Publisher: Springer Nature
Published: Jul 10 1991
Pages: 100
Weight: 0.38
Height: 0.24 Width: 6.14 Depth: 9.21
Language: English
The book develops a new model of individual choice under risk within the general framework of rank-dependent utility theory. The new approach captures simultaneously an optimistic attitude towards gambling and risk averse behavior. The model is then applied to some of the observed behavioral patterns contradicting the expected utility hypothesis.

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Business General