An axiomatic theory of conjoint, expected risk (Q1079145)

An axiomatization of subjective risk judgements that leads to a representation of risk in terms of seven free parameters is presented. This model differs from the earlier ones of the first author in two ways. First, it accepts the expected risk property. Secondly, it modifies the assumption about the impact of change in scale to take into account the fact that subjects seem to deal rather differently with the positive and negative outcomes.