There is a body of evidence that exhibits theoretical and empirical crisis of Expected Utilty Theory, that is, in many situations, individuals do not maximize the expected utility. So we propose a model taking into account the possible dependence of the functional that evaluates lotteries on the particular risky structures: we individuate in the quasilinear means a class of functionals that is wide enough to represent the different attitudes of the decision makers toward risk and preserves probability structure.
Quasi-linear means and stochastic dominance / D'Apuzzo, Livia; M., Squillante. - (2004). (Intervento presentato al convegno New Economic windows tenutosi a Salerno nel settembre 2004).
Quasi-linear means and stochastic dominance
D'APUZZO, LIVIA;
2004
Abstract
There is a body of evidence that exhibits theoretical and empirical crisis of Expected Utilty Theory, that is, in many situations, individuals do not maximize the expected utility. So we propose a model taking into account the possible dependence of the functional that evaluates lotteries on the particular risky structures: we individuate in the quasilinear means a class of functionals that is wide enough to represent the different attitudes of the decision makers toward risk and preserves probability structure.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
