Experiments on Decision Under Risk: The Expected Utility Hypothesis - Hardcover

Schoemaker, Paul J. H.

Hardcover

ISBN 10: 0898380359 ISBN 13: 9780898380354

Publisher: Kluwer Academic Publishers, 1980

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."

Edition details

• Publisher: Kluwer Academic Publishers
• Publication date: 1980
• Language: English
• ISBN 10: 0898380359
• ISBN 13: 9780898380354
• Binding: Hardcover
• Number of pages: 192