Item description for Distorted Probabilities and Choice under Risk (Lecture Notes in Economics and Mathematical Systems) by Clemens Puppe...
This book provides a systematic, formal treatment of a recently proposed extension of the expected utility model of choice under risk: the so-called rank-dependent utility model. In this approach the representation of preferences is based upon a (generalized) utility function defined on the outcome/probability-plane. The main purpose of the book is to demonstrate the flexibility of this model with respect to its explanatory power. This is achieved by analyzing a certain subclass of the rank-dependent utility approach which incorporates the notion of price-dependent distortions of probabilities. This particular approach captures an optimistic point of view towards gambling (as can often be observed), whilst being compatible with a suitably formulated concept of risk aversion. The resulting model is used to explain some of the observed behavioral patterns as the Allais-paradox and the behavior described by the Friedman-Savage hypothesis.
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Est. Packaging Dimensions: Length: 9.06" Width: 6.06" Height: 0.31" Weight: 0.44 lbs.
Release Date Aug 8, 1991
ISBN 3540542477 ISBN13 9783540542476
Availability 81 units. Availability accurate as of May 26, 2017 03:24.
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