Choice under uncertainty with the best and worst in mind: neo-additive capacities

Alain Chateauneuf, Jürgen Eichberger and Simon Grant

No 03-10, Papers from Sonderforschungsbreich 504

Abstract: The concept of a non-extreme-outcome-additive capacity (neo-additive capacity ) is introduced. Neo-additive capacities model optimistic and pessimistic attitudes towards uncer-tainty 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.

Keywords: optimism; pessimism; Choquet expected utility; portfolio choice (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (6)

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https://madoc.bib.uni-mannheim.de/2773/1/dp03_10.pdf

Related works:
Journal Article: 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 (2007)
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)
Working Paper: Choice under Uncertainty with the Best and Worst in Mind: Neo-additive Capacities (2002)
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