Hurwicz expected utility and subjective sources

A-Tier
Journal: Journal of Economic Theory
Year: 2015
Volume: 159
Issue: PA
Pages: 465-488

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In experiments, subjects are often not indifferent among all sources of uncertainty; between two prospects yielding the same distribution of monetary rewards, they may strictly prefer one over the other. We formulate a special case of α-maxmin expected utility theory in a Savage setting, show that every decision maker perceives multiple subjective sources, and that source-utilities are rank dependent expected utility. A power series identifies each source, measures source-uncertainty, and determines the agent's source-specific risk attitude. Subjective sources relate Ellsberg-paradox behavior to source preference and to Allais-paradox behavior.

Technical Details

RePEc Handle
repec:eee:jetheo:v:159:y:2015:i:pa:p:465-488
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29