Paper Info
Title
An axiomatic account of status quo-dependent non-expected utility: Pragmatic constraints on rational choice under risk
Abstract
An axiomatic account of rational risky choice is given which makes the impact of the decision maker's economic situation on his preferences explicit. The constraints on rationality include the decision maker's aspirations, uncertainties of current wealth and income (status quo), and the dependence of risk attitudes on background risks. Preferences admit a unique explicit utility representation in a suitable normalisation of the utility scale. The utility functional is generally non-linear in the probabilities and non-separable, but otherwise mathematically simple. It explicates well-known empirical features of utility-oriented behaviour such as the Allais paradox, observed variations in risk attitude and systematic violations of betweenness.
Year
DOI
Venue
2008
10.1016/j.mathsocsci.2007.09.004
Mathematical Social Sciences
Keywords
DocType
Volume
Risk analysis,Decision theory,Utility theory,Non-expected utility,Status quo-dependent risk preferences
Journal
55
Issue
ISSN
Citations 
2
0165-4896
5
PageRank 
References 
Authors
0.63
2
1
Name
Order
Citations
PageRank
Gebhard Geiger1123.28