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Subjective Expected Utility and Psychological Gambles

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  • Gianluca Cassese

Abstract

We obtain an elementary characterization of expected utility based on a representation of choice in terms of psychological gambles, which requires no assumption other than coherence between ex-ante and ex-post preferences. Weaker version of coherence are associated with various attitudes towards complexity and lead to a characterization of minimax or Choquet expected utility.

Suggested Citation

  • Gianluca Cassese, 2023. "Subjective Expected Utility and Psychological Gambles," Papers 2307.10328, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2307.10328
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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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