Expected utility theory with imprecise probability perception: explaining preference reversals
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DOI: 10.1080/13504851.2016.1240332
Abstract: ABSTRACT This article presents a new model for decision-making under risk, which provides an explanation for empirically-observed preference reversals. Central to the theory is the incorporation of probability perception imprecision, which arises because of individuals’… read more here.
Keywords: economics; preference; preference reversals; probability perception ... See more keywords