A BEJTE Topics article.

Abstract

We propose a new theory of choice between lotteries, which combines an 'economic' view of decision making - based on a rational, though incomplete, ordering - with a 'psychological' view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns of choice as well as violations of independence.

Submitted: July 20, 2004 · Accepted: October 5, 2004 · Published: December 25, 2004

Originally published in Topics in Theoretical Economics.

Recommended Citation

Manzini, Paola and Mariotti, Marco (2004) "A Theory of Vague Expected Utility," Topics in Theoretical Economics: Vol. 4 : Iss. 1, Article 10.
Available at: http://www.bepress.com/bejte/topics/vol4/iss1/art10