Experiments on Decisions under Risk: The Expected Utility Hypothesis - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Experiments on Decisions under Risk: The Expected Utility Hypothesis write by P.J.H. Schoemaker. This book was released on 2013-11-11. Experiments on Decisions under Risk: The Expected Utility Hypothesis available in PDF, EPUB and Kindle. In this valuable book, Paul Schoemaker summarizes recent experimental and field research that he and others have undertaken regarding the descrip tive validity of expected utility theory as a model of choice under uncer tainty. His principal message is that this paradigm is too narrow in its con ception and misses some of the important elements of a descriptive model of individual choice. In particular, Schoemaker calls attention to the impor tance of individual differences, task effects, and context effects as they influence behavior. The expected utility hypothesis has come under scrutiny in recent years from a number of different quarters. This book brings together these many studies and relates them to the large body of literature on individual de cision making under risk. Although this paradigm may be appropriate for describing behavior under many conditions of uncertainty, Schoemaker presents convincing evidence that it does not do well with respect to protec tion against low-probability events. For example, he shows that the insur ance purchase decision is influenced by the way information is presented to the client, as well as by the statistical knowledge of the respondents.
Experiments in decision-making under Risk
Experiments in decision-making under Risk - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Experiments in decision-making under Risk write by Michał Wiktor Krawczyk. This book was released on 2009. Experiments in decision-making under Risk available in PDF, EPUB and Kindle.
Uncertain Decisions
Uncertain Decisions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Uncertain Decisions write by Luigi Luini. This book was released on 2012-12-06. Uncertain Decisions available in PDF, EPUB and Kindle. Uncertain Decisions: Bridging Theory and Experiments presents advanced directions of thinking on decision theory - in particular the more recent contributions on non-expected utility theory, fuzzy decision theory and case-based theory. This work also provides theoretical insights on measures of risk aversion and on new problems for general equilibrium analysis. It analyzes how the thinking that underlies the theories described above spills over into real decisions, and how the thinking that underlies these real decisions can explain the discrepancies between theoretical approaches and actual behavior. This work elaborates on how the most recent laboratory experiments have become an important source both for evaluating the leading theory of choice and decision, and for contributing to the formation of new models regarding the subject.
Expected Utility Hypotheses and the Allais Paradox
Expected Utility Hypotheses and the Allais Paradox - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Expected Utility Hypotheses and the Allais Paradox write by M. Allais. This book was released on 2013-03-14. Expected Utility Hypotheses and the Allais Paradox available in PDF, EPUB and Kindle. Utility theory or, value theory in general, is certainly the cornerstone of decision theory, game theory, microecon~mics, and all social and political theories which deal with public decisions. Recently the American School of utility, founded by von N eumann Morgenstern, encountered a far-going criticism by the French School of utility represented by its founder Allais. The whole basis of the theory of decisions involving risk has been shaken and put into question. Consequently, basic research in the fundamentals of utility and value theory evolved into a crisis. Like any crisis in basic research, and this one was not an exception, it was very fruitful. One may simply say: Allais versus von Neumann-Morgenstern, or the French School of utility versus the American School, became one of the battlefields of scientific development which proved to be a most creative source of new advances and new developments in all those sciences which are based on evaluation of utilities.
Utility Theories: Measurements and Applications
Utility Theories: Measurements and Applications - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Utility Theories: Measurements and Applications write by Ward Edwards. This book was released on 2013-12-01. Utility Theories: Measurements and Applications available in PDF, EPUB and Kindle. The Conference on "Utility: Theories, Measurements, and Applications" met at the Inn at Pasatiempo in Santa Cruz, California, from June II to 15, 1989. The all-star cast of attendees are listed as authors in the Table of Contents of this book (see p. V), except for Soo Hong Chew and Amos Tversky. The purpose of the conference, and of National Science Foundation Grant No. SES-8823012 that supported it, was to confront proponents of new generalized theories of utility with leading decision analysts com mitted to the implementation, in practice, of the more traditional theory that these new theories reject. That traditional model is variously iden tified in this book as expected utility or subjectively expected utility maximization (EU or SEU for short) and variously attributed to von Neumann and Morgenstern or Savage. I had feared that the conference might consist of an acrimonious debate between Olympian normative theorists uninterested in what people actually do and behavioral modelers obsessed with the cognitive illusions and uninterested in helping people to make wise decisions. I was entirely wrong. The conferees, in two dramatic straw votes at the open ing session, unanimously endorsed traditional SEU as the appropriate normative model and unanimously agreed that people don't act as that model requires. (These votes had a profound impact on my thinking; detail about them and about that impact is located in Chapter 10.
