In subjective expected utility (SEU), the decision weights people attach to events are their
beliefs about the likelihood of events. Much empirical evidence, inspired by Ellsberg (1961) …

Approaches to decision-making under uncertainty in the belief function framework are
reviewed. Most methods are shown to blend criteria for decision under ignorance with the …

Predicting and understanding how people make decisions has been a long-standing goal in
many fields, with quantitative models of human decision-making informing research in both …

Set functions are mappings that assign to subsets of a universal set a real number and
appear in many fields of mathematics (pure and applied) and computer sciences …

We develop a new version of prospect theory that employs cumulative rather than separable
decision weights and extends the theory in several respects. This version, called cumulative …

Acts are functions from states of nature into finite-support distributions over a set of
'deterministic outcomes'. We characterize preference relations over acts which have a …

An act maps states of nature to outcomes; deterministic outcomes as well as random
outcomes are included. Two acts f and g are comonotonic, by definition, if it never happens …

BECAUSE PSYCHOLOGY systemati-cally explores human judgment, behavior, and well-
being, it can teach us important facts about how humans differ from the way tlhey are …

This paper investigates the consequences of the following modification of expected utility
theory: Instead of requiring independence with respect to probability mixtures of risky …

This book is an introduction to financial mathematics. It is intended for graduate students in
mathematics and for researchers working in academia and industry. The focus on stochastic …