The Effect of Probabilities on the Subjective Evaluation of Lotteries (Classic Reprint) - Softcover

Karmarkar, Uday S.

Softcover

ISBN 10: 1332259014 ISBN 13: 9781332259014

Verlag: Forgotten Books, 2018

Inhaltsangabe

Excerpt from The Effect of Probabilities on the Subjective Evaluation of Lotteries

Of course, utility theory is only one part of the expected utility formu lation; the other component is the concept of subjective probabilities. Subjective probabilities are defined in the approach of the Savage axioms in terms of canonical lotteries and our later investigations will take note of this fact. Given the utilities and the subjective probabilities associated with the possible outcomes posterior to each action, the optimal act is said to be that action which maximises expected utility. This optimal act is the one that the decision maker should choose, and presumably the one that he would choose if this rule adequately represented his behavior.

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Reseña del editor

Excerpt from The Effect of Probabilities on the Subjective Evaluation of Lotteries

Of course, utility theory is only one part of the expected utility formu lation; the other component is the concept of subjective probabilities. Subjective probabilities are defined in the approach of the Savage axioms in terms of canonical lotteries and our later investigations will take note of this fact. Given the utilities and the subjective probabilities associated with the possible outcomes posterior to each action, the optimal act is said to be that action which maximises expected utility. This optimal act is the one that the decision maker should choose, and presumably the one that he would choose if this rule adequately represented his behavior.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Reseña del editor

Excerpt from The Effect of Probabilities on the Subjective Evaluation of Lotteries

The descriptive ability of the expected utility formulation has been questioned in many investigations. Counterexamples such as the Ellsberg and Allais paradoxes have been posed that lead to choices inconsistent in the expected utility framework. It has been suggested that these effects are related to the probabilities involved.

It is hypothesised that the probabilities involved in a lottery are imperfectly processed in subjectively evaluating the lottery. A simple experiment is proposed to test this possibility. Some preliminary results are reported which appear to demonstrate such an effect, and the implications of the results are briefly discussed.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Details zur Ausgabe

• Verlag: Forgotten Books
• Erscheinungsdatum: 2018
• Sprache: Englisch
• ISBN 10: 1332259014
• ISBN 13: 9781332259014
• Einband: Tapa blanda
• Anzahl der Seiten: 87
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar