Expected utility paradoxes
AbstractThe expected utility (EU) model is widely used for predicting and describing choices under uncertainty. Its usefulness, however, is limited because of its widely acknowledged inconsistencies and paradoxes. This paper describes how important EU model paradoxes can be resolved by accounting for the influences of socio-emotional goods (SEGs) embedded in word and other symbolic frames.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 39 (2010)
Issue (Month): 2 (April)
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Web page: http://www.elsevier.com/locate/inca/620175
Expected utility Social expected utility Word frames Socio-emotional goods Attachment values Allais paradox Insurance paradox Ellsberg paradox Coalescing paradox Violations of stochastic dominance Cash segregation paradox Risk preferences for losses paradox;
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