Choice under uncertainty with the best and worst in mind: neo-additive capacities
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...
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| Main Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | German |
| Published: |
Heidelberg
University of Heidelberg, Department of Economics
January 7, 2003
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| Edition: | This Version: January 7, 2003 |
| Series: | Discussion paper series / University of Heidelberg, Department of Economics
no. 393 |
| In: |
Discussion paper series (no. 393)
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| Subjects: | |
| Online Access: | Resolving-System, Volltext: http://hdl.handle.net/10419/127210
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| Author Notes: | Alain Chateauneuf, Simon Grant and Jürgen Eichberger |
| Summary: | 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, aswe demonstrate by examples. This paper provides an axiomatisation of Choquet expected utility with neo-capacities in a framework of purely subjective uncertainty. |
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| Physical Description: | Online Resource |