Experiments on Decisions under Risk: The Expected Utility Hypothesis

P. J. H. Schoemaker

ISBN 10: 9401750424 / ISBN 13: 9789401750424

Published by Springer, 2014

About this Item

Num Pages: 234 pages, biography. BIC Classification: KJT. Category: (P) Professional & Vocational. Dimension: 229 x 152 x 13. Weight in Grams: 351. . 2013. Softcover reprint of the original 1st ed. 1980. Paperback. . . . .

Seller Inventory # V9789401750424

Bibliographic Details

• Title: Experiments on Decisions under Risk: The Expected Utility Hypothesis
• Publisher: Springer
• Publication Date: 2014
• Language: English
• ISBN 10: 9401750424
• ISBN 13: 9789401750424
• Binding: Soft cover
• Condition: New

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.