Disappointment without prior expectation: a unifying perspective on decision under risk
AbstractThe central idea of Disappointment theory is that an individual forms an expectation about a risky alternative, and may experience disappointment if the outcome eventually obtained falls short of the expectation. We abandon the hypothesis of a well-defined prior expectation: disappointment feelings may arise from comparing the outcome received with anyof the gamble’s outcomes that the individual failed to get. This leads to a new, general form of Disappointment model. It encompasses Rank Dependent Utility with an explicit one-parameter probability transformation, and Risk-Value models with a generic risk measure including Variance, providing a unifying behavioral foundation for these models. Copyright Springer Science + Business Media, LLC 2006
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Bibliographic InfoArticle provided by Springer in its journal Journal of Risk and Uncertainty.
Volume (Year): 33 (2006)
Issue (Month): 3 (December)
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Web page: http://www.springerlink.com/link.asp?id=100299
Disappointment theory; Rank Dependent utility; Risk-value models; Mean-variance; Expected Utility violations;
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