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Utility of gambling I: entropy modified linear weighted utility

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Listed:
  • R. Luce
  • C. Ng
  • A. Marley
  • János Aczél

Abstract

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Suggested Citation

  • R. Luce & C. Ng & A. Marley & János Aczél, 2008. "Utility of gambling I: entropy modified linear weighted utility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(1), pages 1-33, July.
    • Handle: RePEc:spr:joecth:v:36:y:2008:i:1:p:1-33
    DOI: 10.1007/s00199-007-0260-5
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    References listed on IDEAS

    as
    1. R. Duncan Luce, 2003. "Increasing Increment Generalizations Of Rank-Dependent Theories," Theory and Decision, Springer, vol. 55(2), pages 87-146, September.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Yang, Jiping & Qiu, Wanhua, 2005. "A measure of risk and a decision-making model based on expected utility and entropy," European Journal of Operational Research, Elsevier, vol. 164(3), pages 792-799, August.
    4. Cho, Young-Hee & Fisher, Gerald R., 2000. "Receiving Two Consequences: Tests of Monotonicity and Scale Invariance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(1), pages 61-81, September.
    5. R. Luce & A. Marley, 2005. "Ranked Additive Utility Representations of Gambles: Old and New Axiomatizations," Journal of Risk and Uncertainty, Springer, vol. 30(1), pages 21-62, January.
    6. Cho, Young-Hee & Duncan Luce, R. & Truong, Lan, 2002. "Duplex decomposition and general segregation of lotteries of a gain and a loss: An empirical evaluation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1176-1193, November.
    7. Marc Le Menestrel, 2001. "A Process Approach to the Utility for Gambling," Theory and Decision, Springer, vol. 50(3), pages 249-262, May.
    8. Enrico Diecidue & Ulrich Schmidt & Peter P. Wakker, 2004. "The Utility of Gambling Reconsidered," Journal of Risk and Uncertainty, Springer, vol. 29(3), pages 241-259, December.
    9. Conlisk, John, 1993. "The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-275, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michael H. Birnbaum & Ulrich Schmidt & Miriam D. Schneider, 2017. "Testing independence conditions in the presence of errors and splitting effects," Journal of Risk and Uncertainty, Springer, vol. 54(1), pages 61-85, February.
    2. Breitmoser, Yves, 2016. "The axiomatic foundation of logit and its relation to behavioral welfare," MPRA Paper 71632, University Library of Munich, Germany.
    3. Brice Corgnet & Roberto Hernán González, 2023. "On The Appeal Of Complexity," Working Papers 2312, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Brito, Irene, 2020. "A decision model based on expected utility, entropy and variance," Applied Mathematics and Computation, Elsevier, vol. 379(C).

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    More about this item

    Keywords

    Duplex decomposition; Entropy; Functional equations; Joint receipt; Linear weighted utility; Segregation; Utility of gambling; C91; D46; D81;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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