Expected utility with lower probabilities

TY - JOUR

T1 - Expected utility with lower probabilities

AU - Hendon, Ebbe

AU - Jacobsen, Hans Jørgen

AU - Sloth, Birgitte

AU - Tranæs, Torben

N1 - JEL clasification: D81

PY - 1994

Y1 - 1994

N2 - An uncertain and not just risky situation may be modeled using so-called belief functions assigning lower probabilities to subsets of outcomes. In this article we extend the von Neumann-Morgenstern expected utility theory from probability measures to belief functions. We use this theory to characterize uncertainty neutrality and different degrees of uncertainty aversion

AB - An uncertain and not just risky situation may be modeled using so-called belief functions assigning lower probabilities to subsets of outcomes. In this article we extend the von Neumann-Morgenstern expected utility theory from probability measures to belief functions. We use this theory to characterize uncertainty neutrality and different degrees of uncertainty aversion

U2 - 10.1007/BF01065372

DO - 10.1007/BF01065372

M3 - Journal article

SN - 0895-5646

VL - 8

SP - 197

EP - 216

JO - Journal of Risk and Uncertainty

JF - Journal of Risk and Uncertainty

IS - 2

ER -