2019
DOI: 10.3982/ecta15916
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A Non‐Bayesian Theory of State‐Dependent Utility

Abstract: Many decision situations involve two or more of the following divergences from subjective expected utility: imprecision of beliefs (or ambiguity), imprecision of tastes (or multi‐utility), and state dependence of utility. This paper proposes and characterizes a model of uncertainty averse preferences that can simultaneously incorporate all three phenomena. The representation supports a principled separation of (imprecise) beliefs and (potentially state‐dependent, imprecise) tastes. Moreover, the representation… Show more

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Cited by 9 publications
(1 citation statement)
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References 45 publications
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“…There were many attempts to change the expected utility approach, which were classified as non-expected utility theories. There are a number of such non-expected utility theories, among which we may mention a few of the most known ones: prospect theory [144,151,152], weighted-utility theory [153][154][155], regret theory [156], optimism-pessimism theory [157], ordinal-independence theory [158], quadraticprobability theory [159], opportunity-threat theory [160], and state-dependent utility theory [161]. The general discussion of these theories can be found in the review by Machina [150].…”
Section: Problems In Decision Makingmentioning
confidence: 99%
“…There were many attempts to change the expected utility approach, which were classified as non-expected utility theories. There are a number of such non-expected utility theories, among which we may mention a few of the most known ones: prospect theory [144,151,152], weighted-utility theory [153][154][155], regret theory [156], optimism-pessimism theory [157], ordinal-independence theory [158], quadraticprobability theory [159], opportunity-threat theory [160], and state-dependent utility theory [161]. The general discussion of these theories can be found in the review by Machina [150].…”
Section: Problems In Decision Makingmentioning
confidence: 99%