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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Edi Karni
20
insist that the subjective probability measure the decision maker’s beliefs, it seems more
convenient to interpret the additively separable representation of the preference relation
as an expected utility representation with respect to a uniform prior and state-depen-
dent utility functions.
23
Using the uniform prior for Bayesian statistical analysis seems
at least as compelling as—and more practical than—using subjective probabilities
obtained by an arbitrary normalization of the utility function.
A somewhat related aspect of subjective expected utility theory that is similarly
unsatisfactory concerns the interpretation of null e
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Publisher Resources

ISBN: 9780444536853