To Have One's Cake and Eat It, Too: Sequential Choice and Expected-utility Violations

1995 ◽  
Vol 92 (11) ◽  
pp. 586-620 ◽  
Author(s):  
Wlodek Rabinowicz ◽  
Keyword(s):  
Expected Utility ◽  
Sequential Choice ◽  
Expected Utility Violations

Evaluation of similarity models for expected utility violations

2011 ◽  
Vol 162 (1) ◽  
pp. 105-113
Author(s):  
David E. Buschena ◽  
Joseph A. Atwood
Keyword(s):  
Expected Utility ◽  
Expected Utility Violations

Costs of abandoning the Sure-Thing Principle

2015 ◽  
Vol 45 (5-6) ◽  
pp. 827-840 ◽  
Author(s):  
Rachael Briggs
Keyword(s):  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Decision Makers ◽  
Sequential Choice ◽  
The World ◽  
Sure Thing Principle

Risk-weighted expected utility theory (REU theory for short) permits preferences which violate the Sure-Thing Principle (STP for short). But preferences that violate the STP can lead to bad decisions in sequential choice problems. In particular, they can lead decision-makers to adopt a strategy that is dominated – i.e. a strategy such that some available alternative leads to a better outcome in every possible state of the world.

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