Resolving inconsistencies in utility measurement under risk: test of generalizations of expected utilities

Bleichrodt, Han; Abellán Perpiñán, José María; Pinto Prades, José Luis; Méndez Martínez, Ildefonso

Publication:
Resolving inconsistencies in utility measurement under risk: test of generalizations of expected utilities

dc.contributor.author	Bleichrodt, Han
dc.contributor.author	Abellán Perpiñán, José María
dc.contributor.author	Pinto Prades, José Luis
dc.contributor.author	Méndez Martínez, Ildefonso
dc.contributor.department	Economía Aplicada
dc.date.accessioned	2024-12-02T09:11:07Z
dc.date.available	2024-12-02T09:11:07Z
dc.date.issued	2007-03-01
dc.description	© 2007 INFORMS. This document is the Published version of a Published Work that appeared in final form in Management Science. To access the final edited and published work see https://doi.org/10.1287/mnsc.1060.0647
dc.description.abstract	This paper explores inconsistencies that occur in utility measurement under risk when expected utility theory is assumed and the contribution that prospect theory and some other generalizations of expected utility can make to the resolution of these inconsistencies. We used five methods to measure utilities under risk and found clear violations of expected utility. Of the theories studied, prospect theory was the most consistent with our data. The main improvement of prospect theory over expected utility was in comparisons between a riskless and a risky prospect (riskless-risk methods). We observed no improvement over expected utility in comparisons between two risky prospects (risk-risk methods). An explanation for the latter observation may be that there was less distortion in probability weighting in the interval [0.10, 0.20] than has commonly been observed.
dc.format	application/pdf	es
dc.format.extent	15
dc.identifier.citation	Management Science, 2007, Vol. 53, N. 3, pp. 469-482
dc.identifier.doi	https://doi.org/10.1287/mnsc.1060.0647
dc.identifier.issn	Print: 0025-1909
dc.identifier.issn	Electronic: 1526-5501
dc.identifier.uri	http://hdl.handle.net/10201/146985
dc.language	eng	es
dc.publisher	Institute for Operations Research and Management Sciences
dc.relation	The first author's research was made possible by a VIDI grant from the Netherlands Organization for Scientific Research (NWO). The second author acknowledges financia! support from Fundacion Ramon Areces and from Fundacion BBVA. The fourth author acknowledges financia! support from Funda cion BBVA.	es
dc.relation.publisherversion	https://pubsonline.informs.org/doi/10.1287/mnsc.1060.0647
dc.rights.accessRights	info:eu-repo/semantics/restrictedAccess
dc.subject	Utility measurement
dc.subject	Nonexpected utility
dc.subject	Prospect theory
dc.subject	Health
dc.title	Resolving inconsistencies in utility measurement under risk: test of generalizations of expected utilities	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es