The expected-utility framework appears to collapse when the number of bets becomes so large that the probability of success approaches 100%. In those cases, the model draws conclusions that do not ...

Experimental tests of expected-utility theory (EU) have accumulated empirical observations in which the predictions of EU are systematically violated. The cumulative prospect theory (CPT) explains ...

We propose a class of multiple-prior representations of preferences under ambiguity, where the belief the decision-maker (DM) uses to evaluate an uncertain prospect is the outcome of a game played by ...