Bernasconi M. (1991)

Individual decision making under risk and uncertainty: a perspective in the literature. Giornale degli Economisti e Annali di Economia, vol. 50, pp. 125-150

 

Abstract:

This paper surveys the effects that different psychological considerations may produce on individual decision making under risk and uncertainty. Some of these effects may also generate systematic deviations of behaviour from the predictions of the Expected Utility theory. In these cases, the paper also presents some of the more recent non-expected utility models which can accommodate such violations. The main characteristic of the presentation is the suggestion that the different models should be considered as complementary, rather than as alternative, in explaining the deviations.