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Expected Utility with Lower Probabilities

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Author Info
Hendon, Ebbe, et al

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Abstract

An uncertain and not just risky situation may be modeled using so-called belief functions assigning lower probabilities to subsets of outcomes. In this article we extend the von Neumann-Morgenstern expected utility theory from probability measures to belief functions. We use this theory to characterize uncertainty neutrality and different degrees of uncertainty aversion. Coauthors are Hans Jorgen Jacobsen, Birgitte Sloth, and Torben Tranaes. Copyright 1994 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 8 (1994)
Issue (Month): 2 (March)
Pages: 197-216
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Handle: RePEc:kap:jrisku:v:8:y:1994:i:2:p:197-216

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Web page: http://www.springerlink.com/link.asp?id=100299

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  1. Fredrik Andersson, 1999. "Uncertainty aversion in a simple insurance model," Finnish Economic Papers, Finnish Economic Association, vol. 12(1), pages 16-27, Spring. [Downloadable!]
  2. Luca Rigotti & Matthew Ryan & Rema Vaithianathan, 2001. "Entrepreneurial Innovation," Department of Economics, Working Paper Series 1016, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  3. Asheim, G.B. & Dufwenberg, M., 1996. "Admissibility and common knowledge," Discussion Paper 16, Tilburg University, Center for Economic Research. [Downloadable!]
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This page was last updated on 2009-11-7.


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