Double rank dependent expected utility (DRDEU) model in individual judgments

M. M. Yenalyev
2015 European Journal of Economics and Management Sciences  
This study aims to present a new model of decision making in risk that uses double weighting (for probabilities and potential outcomes) process (DRDEU model). In article is shown that the new rank dependent model can explain empirical data better than other coalescing models. It's shown that Allais paradox and Ellsberg paradox can be explained within this model's frameworks too.
doi:10.20534/ejems-15-4-75-79 fatcat:qyfns2ar7ja7nmaz4v3cmniese