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Psychological Expected Utility Theory and Anticipatory Feelings


  • Caplin, Andrew
  • Leahy, John


We extend expected utility theory to situations in which the prizes incloude feelings about living with uncertainty. We provide two examples to show the impact of these anticipatory feelings on decision making.

Suggested Citation

  • Caplin, Andrew & Leahy, John, 1997. "Psychological Expected Utility Theory and Anticipatory Feelings," Working Papers 97-37, C.V. Starr Center for Applied Economics, New York University.
  • Handle: RePEc:cvs:starer:97-37

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    References listed on IDEAS

    1. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
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    6. Weymark, John A., 1981. "Generalized gini inequality indices," Mathematical Social Sciences, Elsevier, vol. 1(4), pages 409-430, August.
    7. Mehran, Farhad, 1976. "Linear Measures of Income Inequality," Econometrica, Econometric Society, vol. 44(4), pages 805-809, July.
    8. Kalai, Ehud & Samet, Dov, 1985. "Monotonic Solutions to General Cooperative Games," Econometrica, Econometric Society, vol. 53(2), pages 307-327, March.
    9. Blackorby, Charles & Bossert, Walter & Donaldson, David, 1994. "Generalized Ginis and Cooperative Bargaining Solutions," Econometrica, Econometric Society, vol. 62(5), pages 1161-1178, September.
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    11. Myerson, Roger B, 1981. "Utilitarianism, Egalitarianism, and the Timing Effect in Social Choice Problems," Econometrica, Econometric Society, vol. 49(4), pages 883-897, June.
    12. Schmeidler, David, 1989. "Subjective Probability and Expected Utility without Additivity," Econometrica, Econometric Society, vol. 57(3), pages 571-587, May.
    13. Blackorby, Charles & Bossert, Walter & Donaldson, David, 1996. "Consistency, Replication Invariance, and Generalized Gini Bargaining Solutions," Journal of Economic Theory, Elsevier, vol. 69(2), pages 367-386, May.
    14. Peters, Hans & Wakker, Peter, 1991. "Independence of Irrelevant Alternatives and Revealed Group Preferences," Econometrica, Econometric Society, vol. 59(6), pages 1787-1801, November.
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    Cited by:

    1. Mooreland, Jay, II, 2011. "The Irrational Investor’s Risk Profile," Master's Theses 107787, University of Minnesota, Department of Applied Economics.

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty


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