Non-Expected Utility and Risk Management

by Christian Gollier (Editor), Mark J . Machina (Editor)

• New

  Hardcover
  1995

  $188.56

  Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk-averse individuals in risky decisions. Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected utility can only be regarded as an approximation of actual behavior.