Choice under Uncertainty and Bounded Rationality

Arbeitspapier

This paper develops a theory for probabilistic models for risky choices that can be viewed as an extension of the expected utility theory to account for bounded rationality. One probabilistic version of the Archimedean Axiom and two versions of the Independence Axiom are proposed. In addition, additional axioms are proposed of which one is Luce's Independence from Irrelevant Alternatives. It is demonstrated that different combinations of the axioms yield different characterizations of the probabilities for choosing the respective risky prospects

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Papers ; No. 409

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Consumer Economics: Theory ; Criteria for Decision-Making under Risk and Uncertainty
• Thema: Random tastes ; bounded rationality ; independence from irrelevant alternatives ; choice among lotteries ; probabilistic choice for uncertain outcomes.

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dagsvik, John K.
• Ereignis: Veröffentlichung
• (wer): Statistics Norway, Research Department
• (wo): Oslo
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/192391
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ