Theory and Decision

, Volume 71, Issue 3, pp 431–438

Empirical rules of thumb for choice under uncertainty


    • Research DepartmentStatistics Norway

DOI: 10.1007/s11238-010-9230-7

Cite this article as:
Aaberge, R. Theory Decis (2011) 71: 431. doi:10.1007/s11238-010-9230-7


A substantial body of empirical evidence shows that individuals overweight extreme events and act in conflict with the expected utility theory. These findings were the primary motivation behind the development of a rank-dependent utility theory for choice under uncertainty. The purpose of this paper is to demonstrate that some simple empirical rules of thumb for choice under uncertainty are consistent with the rank-dependent utility theory.


Rank-dependent utility Maximin Maximax Mid-range

JEL Classification


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© Springer Science+Business Media, LLC. 2010