Review article

THEORIES OF CHOICE UNDER UNCERTAINTY

Perica Vojinić orcid.org/0000-0001-8027-4711 ; Sveučilište u Dubrovniku

Abstract

Traditional economic analysis of choice under uncertainty is based on expected utility theory, although many studies have shown that individual behaviour under uncertainty is not in accordance with fundamental principles of conventional theory. As a result, the growing number of alternative theories and models have emerged criticizing conventional theory. The purpose of this paper is to review conventional expected utility theory and to assess some of the relevant alternative theories of choice under uncertainty.

Keywords

choice under uncertainty; utility function; value function; indifference curves; attitude toward risk

Hrčak ID:

62318

URI

https://hrcak.srce.hr/62318

Publication date:

17.12.2010.

Article data in other languages: croatian

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