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- Title
Consistent probability attitudes.
- Authors
Zank, Horst
- Abstract
In this paper, the principle of meaningful measurement of probabilistic attitudes is revisited. A new principle of consistency in probability attitudes is proposed, which allows for the identification of decision weights completely separate from utility. In the familiar and elegant von Neuman–Morgenstern setup of decision under risk with given objective probabilities, it is shown that, in the presence of standard properties for preferences, adding the new consistency principle leads to rank-dependent utility.
- Subjects
PROBABILITY theory; MATHEMATICAL statistics; DECISION making; STATISTICAL decision making; FINANCIAL risk; VON Neumann algebras; PROBABILITY learning; CONSUMER preferences; UTILITY functions
- Publication
Economic Theory, 2010, Vol 44, Issue 2, p167
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/s00199-009-0484-7