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Utility of gambling I: entropy modified linear weighted utility

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  • R. Luce
  • C. Ng
  • A. Marley
  • János Aczél

Abstract

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Suggested Citation

  • R. Luce & C. Ng & A. Marley & János Aczél, 2008. "Utility of gambling I: entropy modified linear weighted utility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(1), pages 1-33, July.
    • Handle: RePEc:spr:joecth:v:36:y:2008:i:1:p:1-33
    DOI: 10.1007/s00199-007-0260-5
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    References listed on IDEAS

    as
    1. Enrico Diecidue & Ulrich Schmidt & Peter P. Wakker, 2004. "The Utility of Gambling Reconsidered," Journal of Risk and Uncertainty, Springer, vol. 29(3), pages 241-259, December.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Cho, Young-Hee & Fisher, Gerald R., 2000. "Receiving Two Consequences: Tests of Monotonicity and Scale Invariance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(1), pages 61-81, September.
    4. Marc Le Menestrel, 2001. "A Process Approach to the Utility for Gambling," Theory and Decision, Springer, vol. 50(3), pages 249-262, May.
    5. R. Luce & A. Marley, 2005. "Ranked Additive Utility Representations of Gambles: Old and New Axiomatizations," Journal of Risk and Uncertainty, Springer, vol. 30(1), pages 21-62, January.
    6. R. Duncan Luce, 2003. "Increasing Increment Generalizations Of Rank-Dependent Theories," Theory and Decision, Springer, vol. 55(2), pages 87-146, September.
    7. Cho, Young-Hee & Duncan Luce, R. & Truong, Lan, 2002. "Duplex decomposition and general segregation of lotteries of a gain and a loss: An empirical evaluation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(2), pages 1176-1193, November.
    8. Conlisk, John, 1993. "The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-275, June.
    9. Yang, Jiping & Qiu, Wanhua, 2005. "A measure of risk and a decision-making model based on expected utility and entropy," European Journal of Operational Research, Elsevier, vol. 164(3), pages 792-799, August.
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    Citations

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    Cited by:

    1. Brice Corgnet & Roberto Hernán González, 2023. "On The Appeal Of Complexity," Working Papers 2312, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    2. Brito, Irene, 2020. "A decision model based on expected utility, entropy and variance," Applied Mathematics and Computation, Elsevier, vol. 379(C).
    3. Breitmoser, Yves, 2016. "The axiomatic foundation of logit and its relation to behavioral welfare," MPRA Paper 71632, University Library of Munich, Germany.
    4. Michael H. Birnbaum & Ulrich Schmidt & Miriam D. Schneider, 2017. "Testing independence conditions in the presence of errors and splitting effects," Journal of Risk and Uncertainty, Springer, vol. 54(1), pages 61-85, February.

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    More about this item

    Keywords

    Duplex decomposition; Entropy; Functional equations; Joint receipt; Linear weighted utility; Segregation; Utility of gambling; C91; D46; D81;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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