Book contents
- Frontmatter
- Contents
- Preface
- Introduction
- Part I Expected utility
- Part II Nonexpected utility for Risk
- Part III Nonexpected utility for uncertainty
- 13 Conclusion
- Appendices
- Appendix A Models never hold perfectly: how to handle their deficiencies?
- Appendix B Choosing from multiple prospects and binary choice: the principles of revealed preference
- Appendix C Dynamic decisions
- Appendix D Applications other than decision under uncertainty
- Appendix E Bisymmetry-based preference conditions
- Appendix F Nonmonotonic rank-dependent models and the Fehr–Schmidt model of welfare evaluation
- Appendix G Extensions of finite-dimensional results to infinite-dimensional results: a meta-theorem
- Appendix H Measure theory
- Appendix I Related textbooks and surveys
- Appendix J Elaborations of exercises
- Appendix K Skipping parts and interdependencies between sections
- References
- Author index
- Subject index
Appendix D - Applications other than decision under uncertainty
Published online by Cambridge University Press: 05 June 2012
Book contents
- Frontmatter
- Contents
- Preface
- Introduction
- Part I Expected utility
- Part II Nonexpected utility for Risk
- Part III Nonexpected utility for uncertainty
- 13 Conclusion
- Appendices
- Appendix A Models never hold perfectly: how to handle their deficiencies?
- Appendix B Choosing from multiple prospects and binary choice: the principles of revealed preference
- Appendix C Dynamic decisions
- Appendix D Applications other than decision under uncertainty
- Appendix E Bisymmetry-based preference conditions
- Appendix F Nonmonotonic rank-dependent models and the Fehr–Schmidt model of welfare evaluation
- Appendix G Extensions of finite-dimensional results to infinite-dimensional results: a meta-theorem
- Appendix H Measure theory
- Appendix I Related textbooks and surveys
- Appendix J Elaborations of exercises
- Appendix K Skipping parts and interdependencies between sections
- References
- Author index
- Subject index
Summary
The main text has considered decision under uncertainty and decision under risk. The results in this book can be reinterpreted for other contexts such as welfare evaluations, intertemporal choice, multiattribute utility, and numerous other applications. In some contexts a quantitative function V on the prospects, rather than a preference relation ≽, is taken as a primitive. These can often be related to each other, where ≽ is the preference relation represented by V and V is for instance the certainty equivalent function generated by the preference relation. Many conditions for preferences can readily be restated in terms of the certainty equivalent function. For simplicity, we assume that S is finite in this appendix. Extensions to general sets S are straightforward.
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- Prospect TheoryFor Risk and Ambiguity, pp. 384 - 386Publisher: Cambridge University PressPrint publication year: 2010
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