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Choice under Uncertainty with the Best and Worst in Mind: Neo-additive Capacities

Simon Grant (), Alain Chateauneuf () and Jürgen Eichberger

Working Papers from Rice University, Department of Economics

Abstract: The concept of a non-extreme-outcome-additive capacity (neo-additive capacity ) is introduced. Neo-additive capacities model optimistic and pessimistic attitudes towards uncertainty as observed in many experimental studies. Moreover, neo-additive capacities can be applied easily in economic problems, as we demonstrate by examples. This paper provides an axiomatisation of Choquet expected utility with neo-capacities in a framework of purely subjective uncertainty.

JEL-codes: D81 (search for similar items in EconPapers)
Date: 2002-09
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http://www.ruf.rice.edu/~econ/papers/2002papers/10Grant.pdf

Related works:
Journal Article: Choice under uncertainty with the best and worst in mind: Neo-additive capacities (2007) Downloads
Working Paper: Choice under uncertainty with the best and worst in mind: neo-additive capacities (2007)
Working Paper: Choice under uncertainty with the best and worst in mind: neo-additive capacities (2003) Downloads
Working Paper: Choice under Uncertainty with the Best and Worst in Mind: Neo-additive Capacities (2003) Downloads
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