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Generalized Expected Utility Analysis and the Nature of Observed Violations of the Independence Axiom
16 references·16 citing·24 second hopsampled
Generalized Expected Utility Analysis and the Nature of Observed Violations of the Independence Axiom (1983)Generalized Expected Utility Analysis and…Theory of games and economic behavior (2019)Theory of games and economic …Economic Theory of Choice and the Preference Reversal Phenomenon (2006)Economic Theory of Choice and…Prospect theory: An analysis of decision under risk (1988)Prospect theory: An analysis …State of the Art—Utility Assessment Methods (1984)State of the Art—Utility Asse…Nontransitive measurable utility (1982)Nontransitive measurable util…"Expected Utility" Analysis without the Independence Axiom (1982)"Expected Utility" Analysis w…Utility Theory: Axioms Versus ‘Paradoxes’ (1979)Utility Theory: Axioms Versus…Prospect Theory: An Analysis of Decision under Risk (1979)Prospect Theory: An Analysis …Risk Aversion in the Small and in the Large (1976)Risk Aversion in the Small an…Who accepts Savage's axiom? (1974)Who accepts Savage's axiom?Rules for Ordering Uncertain Prospects (1969)Rules for Ordering Uncertain …Intransitivity of preferences. (1969)Intransitivity of preferences.Decision Analysis: Introductory Lectures on Choices Under Uncertainty. (1969)Decision Analysis: Introducto…Risk Aversion in the Small and in the Large (1964)Risk Aversion in the Small an…An Axiomatic Approach to Measurable Utility (1953)An Axiomatic Approach to Meas…The Utility Analysis of Choices Involving Risk (1948)The Utility Analysis of Choic…Impact of Personal and Situational Factors on Taxpayer Compliance: An Experimental Analysis (2003)Impact of Personal and Situat…The logic of normative falsification: rationality and experiments in decision theory (2000)The logic of normative falsif…A LONGITUDINAL DISAGGREGATION OF OPERATIONAL RISK UNDER CHANGING REGULATIONS: EVIDENCE FROM THE SAVINGS AND LOAN INDUSTRY. (1997)A LONGITUDINAL DISAGGREGATION…Expected utility without utility (1996)Expected utility without util…Non-Expected Utility and The Robustness of the Classical Insurance Paradigm (1995)Non-Expected Utility and The …THEORIES OF CHOICE UNDER IGNORANCE AND UNCERTAINTY (1992)THEORIES OF CHOICE UNDER IGNO…Security level, potential level, expected utility: A three-criteria decision model under risk (1992)Security level, potential lev…Arbitrage, Rationality, and Equilibrium (1992)Arbitrage, Rationality, and E…Existence and dynamic consistency of Nash equilibrium with non-expected utility preferences (1991)Existence and dynamic consist…The General Theory of Random Choices in Relation to the Invariant Cardinal Utility Function and the Specific Probability Function. The (U, θ) Model A General Overview (1988)The General Theory of Random …The Contribution of Rational Choice Theory to Macrosociological Research (1988)The Contribution of Rational …Expected utility: An anniversary and a new era (1988)Expected utility: An annivers…Risk Aversion in Quiggin and Yaari's Rank-Order Model of Choice Under Uncertainty (1987)Risk Aversion in Quiggin and …Empirical tests of weighted utility theory (1986)Empirical tests of weighted u…Why be Consistent? A Critical Analysis of Consistency Requirements in Choice Theory (1985)Why be Consistent? A Critical…Rationality and uncertainty (1985)Rationality and uncertaintyThe theory of decision making. (1954)Individual Choice Behavior (1962)Formative assessment and the design of instructional systems (1989)Advances in prospect theory: Cumulative representation of uncertainty (1992)Individual differences in reasoning: Implications for the rationality debate? (2000)Risk, Ambiguity, and the Savage Axioms (1961)Judgment under Uncertainty: Heuristics and Biases (1975)The Framing of Decisions and the Psychology of Choice (1981)Exploration and Exploitation in Organizational Learning (1991)Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance (2007)On the measurement of inequality (1970)On Economic Inequality (1973)A theory of anticipated utility (1982)Toward a positive theory of consumer choice (1980)Risk as feelings. (2001)The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence (1985)Theory of Financial Decision Making. (1988)Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework (1989)Non-cooperative games (1989)The Economic Theory of Agency: The Principal's Problem. (1973)Financial Intermediation and Delegated Monitoring (1984)Well-being : the foundations of hedonic psychology (1999)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The arbitrage theory of capital asset pricing (1976)
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References

  • 1979Prospect Theory: An Analysis of Decision under Risk48,459 cited
  • 1988Prospect theory: An analysis of decision under risk32,475 cited
  • 2019Theory of games and economic behavior16,630 cited
  • 1964Risk Aversion in the Small and in the Large4,964 cited
  • 1976Risk Aversion in the Small and in the Large4,655 cited
  • 1948The Utility Analysis of Choices Involving Risk3,097 cited
  • 1969Intransitivity of preferences.2,195 cited
  • 1969Decision Analysis: Introductory Lectures on Choices Under Uncertainty.1,928 cited
  • 1969Rules for Ordering Uncertain Prospects1,757 cited
  • 1982"Expected Utility" Analysis without the Independence Axiom1,518 cited
  • 2006Economic Theory of Choice and the Preference Reversal Phenomenon1,173 cited
  • 1953An Axiomatic Approach to Measurable Utility704 cited
  • 1974Who accepts Savage's axiom?601 cited
  • 1982Nontransitive measurable utility495 cited
  • 1984State of the Art—Utility Assessment Methods436 cited
  • 1979Utility Theory: Axioms Versus ‘Paradoxes’411 cited

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Cited by

  • 1988The Contribution of Rational Choice Theory to Macrosociological Research274 cited
  • 1988The General Theory of Random Choices in Relation to the Invariant Cardinal Utility Function and the Specific Probability Function. The (U, θ) Model A General Overview143 cited
  • 1987Risk Aversion in Quiggin and Yaari's Rank-Order Model of Choice Under Uncertainty136 cited
  • 1986Empirical tests of weighted utility theory135 cited
  • 1996Expected utility without utility134 cited
  • 1985Why be Consistent? A Critical Analysis of Consistency Requirements in Choice Theory134 cited
  • 1985Rationality and uncertainty126 cited
  • 1997A LONGITUDINAL DISAGGREGATION OF OPERATIONAL RISK UNDER CHANGING REGULATIONS: EVIDENCE FROM THE SAVINGS AND LOAN INDUSTRY.126 cited
  • 2003Impact of Personal and Situational Factors on Taxpayer Compliance: An Experimental Analysis120 cited
  • 1995Non-Expected Utility and The Robustness of the Classical Insurance Paradigm99 cited
  • 1992THEORIES OF CHOICE UNDER IGNORANCE AND UNCERTAINTY87 cited
  • 2000The logic of normative falsification: rationality and experiments in decision theory84 cited
  • 1992Arbitrage, Rationality, and Equilibrium79 cited
  • 1992Security level, potential level, expected utility: A three-criteria decision model under risk76 cited
  • 1988Expected utility: An anniversary and a new era73 cited
  • 1991Existence and dynamic consistency of Nash equilibrium with non-expected utility preferences61 cited