Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96087
Authors: 
Kriesler, Kobi
Nitzan, Shmuel
Year of Publication: 
2009
Series/Report no.: 
Working Papers, Bar-Ilan University, Department of Economics 2009-17
Abstract: 
In this study we propose an axiomatic theory of decision-making under risk that is based on a new approach to the modeling of framing that focuses on the subjective statistical dependence between prizes of compared lotteries. Unlike existing models that allow objective statistical dependence, as in Regret Theory, in our model the emphasis is on alternative subjective statistical dependence patterns that are induced by alternative descriptions of the lotteries, i.e., by alternative framing. A distinct advantage of the proposed general descriptive model of choice is its ability to adequately explain a wide variety of behaviors and, in particular, several well-known paradoxes of different types.
Subjects: 
framing
statistical dependence
non-expected utility
expected value of lottery interchange
JEL: 
D81
Document Type: 
Working Paper

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