Discussion Papers no. 409
Choice under uncertainty and bounded rationality
This paper develops a theory for probabilistic models for risky choices that can be viewed as an extension of the expected utility theory to account for bounded rationality. One probabilistic version of the Archimedean Axiom and two versions of the Independence Axiom are proposed. In addition, additional axioms are proposed of which one is Luce's Independence from Irrelevant Alternatives. It is demonstrated that different combinations of the axioms yield different characterizations of the probabilities for choosing the respective risky prospects
Om publikasjonen
- Tittel
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Choice under uncertainty and bounded rationality
- Ansvarlig
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John K. Dagsvik
- Serie og -nummer
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Discussion Papers no. 409
- Utgiver
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Statistics Norway
- Emne
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Discussion Papers
- Antall sider
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41
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
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