Titlebook: Generalized Expected Utility Theory; The Rank-Dependent M John Quiggin Book 1993 Kluwer Academic Publishers 1993 European Union (EU).Financ

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Extensionsject of this chapter is to give a brief indication of the ways in which the ideas developed above, and particularly the rank-dependent model, may be extended to a range of contexts beyond the theory of choice under uncertainty with known probabilities.

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978-94-010-4966-5Kluwer Academic Publishers 1993

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EU Theoryhigher values of the functional correspond to increasing preference. With the notation given above, we may present a formal outline of EU theory. For any prospect (.), the . of the prospect is defined by a functional where is a ..

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Comparative Statics for RDEU Theorypothesis of EU maximization apply in a more general setting; to indicate where EU results may not apply; and to analyze problems that lie outside the scope of EU theory. This chapter is primarily devoted to the first of these problems.