# Risk attitudes and decision weights

Article Abstract:

The decision weights derived from an individual's risk behavior, nonlinear preferences between risky alternatives and dependence on uncertainty source is presented. The result is an S-shaped weighting function which assigns large weights to small probabilities and small weights to high probabilities. Using these, procedures for evaluating different weighting functions with respect to the degree of deviation from expected utility and for assessing a person's weighting functions for risk and uncertainty, respectively, are obtained.

Publication Name: Econometrica

Subject: Mathematics

ISSN: 0012-9682

Year: 1995

User Contributions:

Comment about this article or add new information about this topic:

# A definition of subjective probabilities with state-dependent preferences

Article Abstract:

An analysis of the development of subjective probabilities under conditions of state-dependent preferences is presented. It is shown that such type of probabilities sets a conceptual difficulty. Examples may be developed which indicate the inherently state dependent nature of preferences over outcomes in the process of decision making. Sufficient conditions may also be provided for the subjective expected utility representation of preference relations over acts.

Publication Name: Econometrica

Subject: Mathematics

ISSN: 0012-9682

Year: 1993

User Contributions:

Comment about this article or add new information about this topic:

- Abstracts: Order indifference and rank-dependent probabilities. How complicated are betweenness preferences?
- Abstracts: Trading bargaining weights. A remark on rational expectation equilibria with incomplete markets and real assets
- Abstracts: Pazner-Schmeidler rules in large societies. Representing subjective orderings of random variables: an extension
- Abstracts: Gross substitutability and the weak axiom of revealed preference. Vickrey-Clarke-Groves mechanisms in continuum economies: characterization and existence
- Abstracts: Estimation of exact linear time-varying constraints, with an application to population projections. Constraining Kalman filter and smoothing estimates to satisfy time-varying restrictions