Austrian economists differ with the economic mainstream in many ways, but the break on utility theory is especially critical ...

According to the theory of expected utility, a staple of modern economics, people should always carefully weigh the likelihood of an event along with the prizes or consequences that would accrue ...

Expected Utility Theory (EUT) and Cumulative Prospect Theory (CPT) face problems explaining preferences of long-term investors. Previous research motivates that the subjective utility of a long-term ...

Smooth ambiguity preferences (Klibanoff, Marinacci, and Mukerji (2005)) describe a decision maker who evaluates each act f according to the twofold expectation V(f) = ∫pϕ(∫Ωu(f)dp)dμ(p) defined by a ...