EXPERIMENTS ON DECISIONS UNDER RISK: The Expected Utility Hypothesis

Schoemaker, Paul J.H. (Graduate School of Business, University of Chicago, Center for Decision Research)

ISBN 10: 0898380359 / ISBN 13: 9780898380354

Published by Boston, Martinus Nijhoff, 1980. [, 1980

About this Item

] Hardback, octavo, black and white on green cloth, xxii + 211 pages, VG+ to Near Fine/no dj (perhaps as issued). Very clean inside and out. Solid binding with hinges intact. Tables, Graphs, Equations.Extensive References. Name Index. Subject Index. RWR5 Economics Banking Finance Financial Management Probability Theory Statistics Math Mathematics Investments Risk Taking Gambling Insurance Loss Losses.

Seller Inventory # 03490

Bibliographic Details

• Title: EXPERIMENTS ON DECISIONS UNDER RISK: The Expected Utility Hypothesis
• Publisher: Boston, Martinus Nijhoff, 1980. [
• Publication Date: 1980
• Language: English
• ISBN 10: 0898380359
• ISBN 13: 9780898380354
• Binding: Hardcover
• Edition: 1st Edition.
• Condition: Very Good

About this title

Synopsis

In this valuable book, Paul Schoemaker summarizes recent experimental and field research that he and others have undertaken regarding the descrip­ tive validity of expected utility theory as a model of choice under uncer­ tainty. His principal message is that this paradigm is too narrow in its con­ ception and misses some of the important elements of a descriptive model of individual choice. In particular, Schoemaker calls attention to the impor­ tance of individual differences, task effects, and context effects as they influence behavior. The expected utility hypothesis has come under scrutiny in recent years from a number of different quarters. This book brings together these many studies and relates them to the large body of literature on individual de­ cision making under risk. Although this paradigm may be appropriate for describing behavior under many conditions of uncertainty, Schoemaker presents convincing evidence that it does not do well with respect to protec­ tion against low-probability events. For example, he shows that the insur­ ance purchase decision is influenced by the way information is presented to the client, as well as by the statistical knowledge of the respondents.