Accounting for optimism and pessimism in expected utility (Q660098)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Accounting for optimism and pessimism in expected utility |
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Accounting for optimism and pessimism in expected utility (English)
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25 January 2012
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This paper tackles the problem of characterizing preference relations between lotteries modified by mixing with probabilities centered at the extremes of their supports. Conditions for the representation of a preference by a non-extreme outcome expected utility are established under assumptions like stochastic dominance, Jensen continuity, von Neumann-Morgenstern independence and independence of probability shifts.
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Expected utility
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rank dependent utility
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preference foundation
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prospect theory
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