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Decisions under risk and uncertainty: A survey of recent developments

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Summary

This paper reviews recently proposed axiomatic models of choice under uncertainty and risk. The presentation focuses on the various models of transitive preferences which abandon the expected utility hypothesis by weakening the strong separability assumption known as the sure thing principle in the case of uncertainty and as the independence axiom in the case of risk. Special emphasis is on the remarkable similarities held in common by both the approaches to decisions under uncertainty and under risk.

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Authors and Affiliations

  1. Forschungsstelle für Empirische Wirtschaftsforschung, Hochschule St. Gallen, CH-9000, St. Gallen

    P. Kischka

  2. Institut für Statistik und Mathematische Wirtschaftstheorie der Universität Karlsruhe, Kaiserstra\e 12, D-7500, Karlsruhe

    C. Puppe

Authors
  1. P. Kischka
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  2. C. Puppe
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Kischka, P., Puppe, C. Decisions under risk and uncertainty: A survey of recent developments. ZOR - Methods and Models of Operations Research 36, 125–147 (1992). https://doi.org/10.1007/BF01417213

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  • DOI: https://doi.org/10.1007/BF01417213

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