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Normative Theories of Decision Making under Risk and under Uncertainty

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Book cover Non-Conventional Preference Relations in Decision Making

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 301))

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Abstract

Theories of rational preference and choice in situations of decision making under risk and under uncertainty that were developed during the 1940’s and 1950’s have come under increasing fire because of their inability to model certain types of reasonable and persistent patterns of preference. This essay outlines the standard theories, discusses defenses and criticisms of their axioms, and reviews recent efforts to generalize them in such a way that the new theories model a wider spectrum of reasonable behaviors without giving up too much of the mathematical convenience and elegance of the earlier theories.

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Author information

Authors and Affiliations

  1. AT&T Bell Laboratories, Murray Hill, New Jersey, 07974, USA

    P. C. Fishburn

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  1. P. C. Fishburn
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Editors and Affiliations

  1. Systems Research Institute, Polish Academy of Science, ul. Newelska 6, 01-447, Warsaw, Poland

    Janusz Kacprzyk

  2. Faculté Polytechnique de Mons, rue de Houdain, 9, B-7000, Mons, Belgium

    Marc Roubens

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Fishburn, P.C. (1988). Normative Theories of Decision Making under Risk and under Uncertainty. In: Kacprzyk, J., Roubens, M. (eds) Non-Conventional Preference Relations in Decision Making. Lecture Notes in Economics and Mathematical Systems, vol 301. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-51711-2_1

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  • DOI: https://doi.org/10.1007/978-3-642-51711-2_1

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-18954-1

  • Online ISBN: 978-3-642-51711-2

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