We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a rational, though incomplete, ordering - with a 'psychological’ view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns of choice as well as violations of independence.incomplete preference relation; cyclical preferences; expected utility

Marco Mariotti

Paola Manzini

English

Research Papers in Economics

Choice between equally valued alternatives”,

Conﬂict Between Intuitive and Rational Processing: When People Behave Against Their Better Judgment”,

Contingent weighting in judgement and choice”,

Elimination by Aspects: a Theory of Choice”,

Expected Utility Theory without the Completeness Axiom”,

Inconsistent Preferences among Gambles”, J o u r n a lo fE x p e r i m e n t a lP s y c h o l o g y

Knightian Uncertainty Theory: Part I”, Cowles Foundation Discussion Paper 807. 13[5]

Le Comportement de l’Homme Rationelle devant le Risque:

Making Low Probabilities Useful”,

Maximization and the Act of Choice”,

Nontransitive Measurable Utility”,

Prospect Theory: an Analysis of Decision Under Risk”,

Rational Actors or Rational Fools: Implications of the Aﬀect Heuristic for Behavioural Economics”, mimeo, Decision Research,

Reasoning the Fast and Frugal Way: Models of Bounded Rationality”,

Regret in Decision Making under Uncertainty”,

Regret Theory: an Alternative Theory of Rational Choice under Uncertainty”,

Reversals of Preferences between Bid and Choices in Gambling Decisions”, J o u r n a lo fE x p e r i m e n t a lP s y -chology,

Similarity and Decision Making Under Risk (Is there a utility theory resolution to the Allais Paradox?)”,

Testing Alternative Explanations of Cyclical Choice”,

A Theory of Vague Expected Utility

http://128.118.178.162/eps/game/papers/0304/0304003.pdf

A Theory of Vague Expected Utility

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics