£122.42

Springer - Generalized Expected Utility Theory: Rank-Dependent Model

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Description

Explore the evolution of economic analysis with Generalized Expected Utility Theory: The Rank-Dependent Model by Springer. For decades, the expected utility (EU) model has served as the foundation for analyzing choice under uncertainty, yet it has faced consistent criticism from psychologists who observed that individual choices often deviate from EU predictions. This text examines how the field moved beyond the limitations of the standard model. While applied work in finance previously relied on simpler mean-variance analysis, the 1980s saw a shift toward more advanced frameworks. This book covers the generalizations of EU that emerged to address these inconsistencies. These models provide a way to explain observed human behavior while maintaining essential mathematical properties like transitivity and dominance. This is a vital resource for students and professionals studying econometrics and the complexities of decision-making under uncertainty.

Key Features

Examines the history and limitations of the traditional expected utility model in economic analysis.

Addresses psychological evidence showing why individual choices often differ from standard EU predictions.

Covers the transition from simple mean-variance analysis to more advanced economic frameworks.

Explains the 1980s shift toward generalizations of EU that resolve long-standing skepticism.

Provides insight into models that preserve transitivity and dominance while explaining inconsistent behaviors.

Product Specifications

Format
hardcover
Domain
Amazon UK
Release Date
31 December 1992
Listed Since
15 February 2007

Barcode

No barcode data available

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