Abstract
Rank-dependent utility (RDU) theory is a model of transitive preferences over probability distributions where the representation of preferences is based upon a (generalized) utility function defined on the outcome/probability-plane. Several specific forms of the generalized utility function have been examined in the literature, all of which imply multiplicative separability in the outcome/probability space. The most general model of this kind is the anticipated utility model firstly introduced in [Quiggin 1982]. The anticipated utility model has been proved very useful in explaining much of the empirical evidence against expected utility maximizing behavior.2
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1991 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Puppe, C. (1991). Conclusion. In: Distorted Probabilities and Choice under Risk. Lecture Notes in Economics and Mathematical Systems, vol 363. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58203-5_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-58203-5_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-54247-6
Online ISBN: 978-3-642-58203-5
eBook Packages: Springer Book Archive