A Theory of Vague Expected Utility

Paola Manzini () and Marco Mariotti

Game Theory and Information from EconWPA

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.

Keywords: incomplete preference relation; cyclical preferences; expected utility (search for similar items in EconPapers)
JEL-codes: C7 D8 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-gth and nep-mic
Date: 2003-04-17, Revised 2004-07-16
Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on HP; pages: 27; figures: included
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Journal Article: A Theory of Vague Expected Utility (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpga:0304003

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