Austrian economists differ with the economic mainstream in many ways, but the break on utility theory is especially critical ...

This paper presents a critique of expected utility theory as a descriptive model of decision making under risk, and develops an alternative model, called prospect theory. Choices among risky prospects ...

This is a preview. Log in through your library . Abstract Rabin (Econometrica 68(5): 1281-1292, 2000) argues that, under expected-utility, observed risk aversion over modest stakes implies extremely ...

Green, Jerry R. "'Making Book Against Oneself,' the Independence Axiom, and Non-Linear Utility Theory." Quarterly Journal of Economics 102, no. 4 (November 1987): 785–796.

In economics, the utility function measures the welfare or satisfaction of a consumer as a function of the consumption of real goods, such as food or clothing. Utility function is widely used in ...