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

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URL:	http://ub-madoc.bib.uni-mannheim.de/2773
URN:	urn:nbn:de:bsz:180-madoc-27733
Document Type:	Working paper
Year of publication:	2003
The title of a journal, publication series:	None
Publication language:	English
Institution:	School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series:	Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject:	330 Economics
Classification:	JEL: D81 ,
Subject headings (SWD):	Mikroökonomie , Verhalten , Entscheidung bei Unsicherheit
Keywords (English):	optimism , pessimism , Choquet expected utility , portfolio choice
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.
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BASE: Chateauneuf, Alain ; Eichberger, Jürgen ; Grant, Simon

Google Scholar: Chateauneuf, Alain ; Eichberger, Jürgen ; Grant, Simon

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