Autore:
Aaberge, Rolf Titolo:
Empirical Rules of Thumb for Choice under Uncertainty Periodico:
International Center for Economics Research, Torino. ICER - Working papers seriesAnno:
2002 - Fascicolo:
22 - Pagina iniziale:
1 - Pagina finale:
8A substantial body of empirical evidence shows that individuals overweight extreme events and act in conflict with the expected utility theory. These findings were the primary motivation behind the development of the rank-dependent utility theory. The purpose of this paper is to demonstrate that some plausible empirical rules of thumb for choice under uncertainty can be rationalized by the rank-dependent utility theorY.
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