Subjectively weighted linear utility

Gordon B Hazen*

*Corresponding author for this work

Research output: Contribution to journalArticle

17 Scopus citations

Abstract

An axiomatized theory of nonlinear utility and subjective probability is presented in which assessed probabilities are allowed to depend on the consequences associated with events. The representation includes the expected utility model as a special case, but can accommodate the Ellsberg paradox and other types of ambiguity sensitive behavior, while retaining familiar properties of subjective probability, such as additivity for disjoint events and multiplication of conditional probabilities. It is an extension, to the states model of decision making under uncertainty, of Chew's weighted linear utility representation for decision making under risk.

Original languageEnglish (US)
Pages (from-to)261-282
Number of pages22
JournalTheory and Decision
Volume23
Issue number3
DOIs
StatePublished - Nov 1 1987

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)
  • Computer Science Applications

Fingerprint Dive into the research topics of 'Subjectively weighted linear utility'. Together they form a unique fingerprint.

Cite this