A measurement of the certainty effect
type: Item
instance of: scholarly article
title: A measurement of the certainty effect
zbMATH Open document ID: 0920.92044
author: Ulrich Schmidt
published in: Journal of Mathematical Psychology
publication date: 1998-01-01T00:00:00Z
review text: For the measurement of the certainty effect, an axiomatic model of decision under risk should be developed, capable of retaining as much of the expected utility as possible. The notions of ``certainty preference'' and ``comparative certainty preference'', characterized in terms of the properties of the derived utility representations, may be derived, permitting the generalization of the Arrow-Pratt measure of absolute risk aversion. The axiomatic model of decision under risk thus developed considers both the certainty effect and the equivalence with the expected utility in all other choice problems. Other aspects approached in the study are: the quantitative evaluation system, several axioms and a representation theorem, the behavioural implications of the derived preference functional. The main sections of the study are as follows: Outline of the model; Axiomatic analysis; Characterization of behaviour; Remarks on the related literature. In an Appendix, some proofs of several propositions and theorems are provided.
Mathematics Subject Classification ID: 91E99
zbMATH DE Number: 1218785
zbMATH Keywords: Allais paradox
zbMATH Keywords: certainty preference
zbMATH Keywords: certainty effect
zbMATH Keywords: expected utility
reviewed by: Cristina Irimia
MaRDI profile type: Publication
full work available at URL: jmps.1997.1197
OpenAlex ID: W2093681361
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Wikidata QID: Q52229871
DOI: 10.1006/JMPS.1997.1197
description: scientific article; zbMATH DE number 1218785