Journal ArticleDOI
Friedman-Savage Utility Functions Consistent with Risk Aversion
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In this paper, the utility of wealth in the model of assumptions and notation is discussed. But the model does not consider borrowing constraints, as in this paper, and the model is based on the assumption and notation of the model.Abstract:
I. Introduction, 472. — II. The model: assumptions and notation, 474. — III. Derivation of the model, 477. — IV. The utility of wealth, 478. — V. Borrowing constraints: an example, 480. — VI. Concluding remarks, 486.read more
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Journal ArticleDOI
Two‐piece von neumann‐morgenstern utility functions*
TL;DR: In this article, the authors examined general features and susceptability to fits by linear, power, and exponential functions, and made separate fits to below-target and above-target data.
Book ChapterDOI
The So-Called Allais Paradox and Rational Decisions under Uncertainty
TL;DR: The Foundations of a Positive Theory of Choice Involving Risk and a Criticism of the Postulates and Axioms of the American School (see Part II of this Volume as mentioned in this paper ).
Journal ArticleDOI
Managerial Risk Preferences for Below-Target Returns
TL;DR: In this paper, the authors report on the risk preferences for below target returns of 224 managers from the U.S. Canada, and Europe and find that the distribution of risk preferences tended to be stable over a wide range of experimental conditions: diversity of background of managers, the size of outcomes below target, and the context of the decision process personal versus managerial.
Journal ArticleDOI
The utility of gambling.
TL;DR: In this paper, a tiny utility of gambling is added to an expected utility model for a risk-averse individual to explain small payoff gambles, large prize lotteries, and patterns of risk-seeking in the experimental evidence that are puzzling from the viewpoint of standard theory.