Neurobiological studies of risk assessment: A comparison of expected utility and mean-variance approaches

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d'Acremont, M.; Bossaerts, Peter; (2008)
  • Publisher: Psychonomic Society

When modeling valuation under uncertainty, economists generally prefer expected utility because it has an axiomatic foundation, meaning that the resulting choices will satisfy a number of rationality requirements. In expected utility theory, values are computed by multi... View more
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