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Risk Attitudes in Axiomatic Decision Theory – A Conceptual Perspective

Baccelli, Jean (2018) Risk Attitudes in Axiomatic Decision Theory – A Conceptual Perspective. [Preprint]

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Abstract

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the neutrality of these models between the possible risk attitudes. My central claim, however, is that such neutrality needs to be qualified and the axiomatic relevance of risk attitudes needs to be re-evaluated accordingly. Specifically, I highlight the importance of the conditional variation and the strengthening of risk attitudes, and I explain why they establish the axiomatic significance of the risk attitude concepts. I also present several questions for future research regarding the strengthening of risk attitudes.


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Item Type: Preprint
Creators:
CreatorsEmailORCID
Baccelli, Jeanjean.baccelli@gmail.com0000-0003-0275-0377
Keywords: decision theory under risk, risk aversion, conditional certainty equivalent, Allais paradox, non-expected utility, rank-dependent utility, cautious expected utility
Subjects: General Issues > Decision Theory
Specific Sciences > Economics
General Issues > Game Theory
Specific Sciences > Psychology > Judgment and Decision Making
Specific Sciences > Probability/Statistics
Specific Sciences > Psychology
Depositing User: Jean Baccelli
Date Deposited: 17 Jul 2019 03:39
Last Modified: 17 Jul 2019 03:39
Item ID: 16225
Official URL: https://link.springer.com/article/10.1007/s11238-0...
Subjects: General Issues > Decision Theory
Specific Sciences > Economics
General Issues > Game Theory
Specific Sciences > Psychology > Judgment and Decision Making
Specific Sciences > Probability/Statistics
Specific Sciences > Psychology
Date: 2018
URI: http://philsci-archive.pitt.edu/id/eprint/16225

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