Modeling the Non-Expected Choice: A Weighted Utility Logit
نویسنده
چکیده
This work derives and simulates two choice models applying the weighted utility theory, a generalization of the expected utility theory. It shows one set of assumptions, which justify the practice of including the mean and the variance of a risky alternative into a linear utility function of the choice model. A Monte Carlo simulation provides empirical evidence on the robustness of the models.
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