Experiments on Decisions under Risk: The Expected Utility Hypothesis

Softcover Nachdruck of the original 1. Auflage 1980
ISBN: 978-94-017-5042-4
Verlag: Springer Netherlands

Buch, Englisch, 211 Seiten, Format (B × H): 152 mm x 229 mm, Gewicht: 349 g

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.

Zielgruppe

Research

Autoren/Hrsg.

Schoemaker, P. J. H.

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensforschung
• Wirtschaftswissenschaften Betriebswirtschaft Management Entscheidungsfindung

Inhaltsverzeichnis

Expected Utility Theory.- Alternative Descriptive Models.- A Positivistic Test of EU Theory.- An Experimental Study of Insurance Decisons.- Statistical Knowledge and Gambling Decisions.- Risk Taking and Problem Context in the Domain of Losses.- Epilogue.