
Handbook of the Economics of Risk and Uncertainty, Volume 1 © 2014 Elsevier B.V.
ISSN 2211-7547, All rights reserved.
http://dx.doi.org/10.1016/B978-0-444-53685-3.00012-X
701
CHAPTER
Non-Expected Utility Models Under
Objective Uncertainty
John Quiggin
School of Economics, University of Queensland, Australia
Abstract
Although expected utility (EU) theory is a powerful tool for the analysis of decision under risk, it has
long been known that individual behavior, in both experimental and market settings, deviates from
the predictions of simple EU models. These violations of EU predictions were largely disregarded until
the late 1970s, when a variety ...