Decision weights in anticipated utility theory. Response to Segal

  • Quiggin J
  • 4


    Mendeley users who have this article in their library.
  • 14


    Citations of this article.


The Anticipated Utility model permits the incorporation of decision weights into a model of choice under uncertainty which maintains the desirable properties of transitivity and preservation of dominance. In order to model choice it is necessary to impose appropriate conditions on the decision weighting function. Segal has argued that the function should be concave so that less favorable outcomes are always given more weight than the favorable ones. In this paper it is argued that outlying low probability events, whether favorable or unfavorable, are likely to be 'overweighted'. © 1987.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


  • John Quiggin

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free