A theory of vague expected utility

Paola Manzini*, Marco Mariotti

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

4 Citations (Scopus)

Abstract

We propose a new theory of choice between lotteries, which combines an 'economic' view of decision making - based on a rational, though incomplete, ordering - with a 'psychological' view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns of choice as well as violations of independence.

Original languageEnglish
Article number10
JournalTopics in Theoretical Economics
Volume4
Issue number1
DOIs
Publication statusPublished - 2004

Bibliographical note

Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.

Keywords

  • Cyclical preferences
  • Expected utility
  • Incomplete preference relation

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