Abstract
The appeal of expected utility (EU) theory — the standard model of decision analysis — as a normative model is not necessatily lessened by its poor quality as a descriptive model. As a matter of fact, observations of systematic violations of EU in Allais [1], Kahneman and Tversky [7], Mac Crimmon and Larsson [15], Kunreuther [10], Schoemaker [17] and elsewhere have had no apparent effect on its popularity.
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© 1988 D. Reidel Publishing Company, Dordrecht, Holland
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Cohen, M., Jaffray, JY. (1988). Preponderence of the Certainty Effect Over Probability Distortion in Decision Making Under Risk. In: Munier, B.R. (eds) Risk, Decision and Rationality. Theory and Decision Library, vol 9. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-4019-2_12
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DOI: https://doi.org/10.1007/978-94-009-4019-2_12
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