Alternatives to expected value theory
Wikipedia (2003) Prospect theory, Wikipedia, March 16 (updated 2 May 2021).
Wikipedia (2006) Rank-dependent expected utility, Wikipedia, August 6 (updated 6 November 2020).
Wikipedia (2008) Regret (decision theory), Wikipedia, March 31 (updated 10 December 2020).
One possibility would be to introduce some form of risk aversion into the decision theory, such as that proposed by Lara Buchak (2013).Buchak.[1] Other alternative theories include rank-dependent expected utility theory, prospect theory, and regret theory, although some of these are more commonly used as descriptive theories than normative models.
BibliographyFurther reading
- ^
Buchak, Lara (2013) Risk and Rationality, Oxford: Oxford University Press.
Wikipedia (2021)(2003) Prospect theory, Wikipedia, March 16 (updated 2 May 2021).
Wikipedia (2020)(2006) Rank-dependent expected utility, Wikipedia, August 6 (updated 6 November 2020).
Wikipedia (2020)(2008) Regret (decision theory), Wikipedia, March 31 (updated 10 December 2020).
Further readingBibliography
Tuthill, Jonathan & Darren Frechette (2002) Non-expected utility theories: weightedWeighted expected, rank dependent, and, cumulative prospect theory utility, Proceedings of the NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, St. Louis, MO.
Wikipedia (2020) Rank-dependent expected utility, Wikipedia..
Although expected value theory is the dominant paradigm in decision theory, it has problems, such as those raised by bounded and unbounded values,values, and by causal and evidential approaches.approaches. This leaves open the possibility of discovering an alternative decision theory.
Briggs, Rachael, 2015.Rachael (2015) Review of Lara Buchak, Risk and rationalityRationality., Notre Dame Philosophical Reviews, March 14.
Buchak, Lara. 2013.Lara (2013) Risk and rationalityRationality., Oxford: Oxford University Press.
Defends risk aversion as rational.
Frechette,Tuthill, Jonathan & Darren & Jonathan Tuthill. 2002.Frechette (2002) Non-expected utility theories: weighted expected, rank dependent, and, cumulative prospect theory utility., Proceedings of the NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, St. Louis, MO.
Wikipedia. 2016.Wikipedia (2021) Prospect theory, Wikipedia.
Wikipedia. 2013.Wikipedia (2020) Rank-dependent expected utility, Wikipedia..
Wikipedia. 2016.Wikipedia (2020) Regret (decision theory), Wikipedia.
Related entries
cluelessness | decision theory | expected value | value of information
Although expected value theory is the dominant paradigm in decision theory, it has problems, such as those raised by bounded and unbounded values, and by causal and evidential approaches. This leaves open the possibility of discovering an alternative decision theory.
One possibility would be to introduce some form of risk aversion into the decision theory, such as that proposed by Lara Buchak (2013). Other alternative theories include rank-dependent expected utility theory, prospect theory, and regret theory, although some of these are more commonly used as descriptive theories than normative models.
Further reading
Briggs, Rachael, 2015. Review of Risk and rationality.
Buchak, Lara. 2013. Risk and rationality. Oxford: Oxford University Press. Defends risk aversion as rational.
Frechette, Darren & Jonathan Tuthill. 2002. Non-expected utility theories: weighted expected, rank dependent, and, cumulative prospect theory utility.
Wikipedia. 2016. Prospect theory.
Wikipedia. 2013. Rank-dependent expected utility.
Wikipedia. 2016. Regret.
Buchak, Lara (2022) "Normative Theories of Rational Choice: Rivals to Expected Utility," Stanford Encyclopedia of Philosophy, Summer 2022 Edition, Edward N. Zalta (ed.), https://plato.stanford.edu/archives/sum2022/entries/rationality-normative-nonutility/.