From Decision in Risk to Decision in Time - and Return: A Restatement of Probability Discounting - Université Paris 1 Panthéon-Sorbonne Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2021

From Decision in Risk to Decision in Time - and Return: A Restatement of Probability Discounting

Résumé

This paper aims at restating, in a decision theory framework, the results of some signicant contributions of the literature on probability discounting that followed the publication of the pioneering article by Rachlin et al. (1991). We provide a restatement of probability discounting in terms of rank-dependent utility, in which the utilities of the outcomes of n-issues lotteries are weighted by probabilities transformed after their transposition into time-delays. This formalism makes the typical cases of rationality in time and in risk mutually exclusive, but allows looser types of rationality. The resulting attitude toward probability and toward risk are then determined in relation to the values of the two parameters involved in the procedure of probability discounting.
Fichier principal
Vignette du fichier
Diaye,-Lapidus,-Schmidt---Probability-discounting---v22.pdf (1.32 Mo) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)

Dates et versions

hal-03256606 , version 1 (10-06-2021)

Identifiants

  • HAL Id : hal-03256606 , version 1

Citer

Marc-Arthur Diaye, André Lapidus, Christian Schmidt. From Decision in Risk to Decision in Time - and Return: A Restatement of Probability Discounting. 2021. ⟨hal-03256606⟩
109 Consultations
115 Téléchargements

Partager

Gmail Facebook X LinkedIn More